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Use the following information from separate companies a through d : Net Income (Loss) Interest Expense Income Taxes a. $ 102,000 $ 37,740 $ 25,500

Use the following information from separate companies a through d:

Net Income (Loss) Interest Expense Income Taxes
a. $ 102,000 $ 37,740 $ 25,500
b. 96,600 34,776 34,776
c. 86,700 34,680 36,414
d. 105,100 7,357 50,448

1a. Compute times interest earned.

Company numerator / denominator = ratio
/ = n/a
a $ / $ = n/a
b $ / $ = n/a
c $ / $ = n/a
d $ / $ = n/a

Options for the row under numerator and denominator: accounts receivable, cost of goods sold, currents assets, current liabilities, income before interest and taxes, interest expense, net income, net sales.

1b. Which company indicates the strongest ability to pay interest expense as it comes due?

Company A, b, c, or d?

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