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The information is for the current year for K Corp: Net income $360,000 Income tax expense 180,000 Interest expense 42,000 1. Compute the times-interest-earned ratio.
The information is for the current year for K Corp:
Net income | $360,000 |
Income tax expense | 180,000 |
Interest expense | 42,000 |
1. Compute the times-interest-earned ratio. (Round the final answer to two decimal places.)
2. Assume the industry average times-interest-earned ratio is 15 times. Interpret your result from part 1
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Digging For Disclosure Tactics For Protecting Your Firms Assets From Swindlers, Scammers, And Imposters
Authors: Kenneth S. Springer, Joelle Scott
1st Edition
0131385569, 9780131385566
