Question
Use the following information from separate companies a through d : Net Income (Loss) Interest Expense Income Taxes a. $ 171,000 $ 82,080 $ 42,750
Use the following information from separate companies a through d:
| Net Income (Loss) | Interest Expense | Income Taxes | |
|---|---|---|---|
| a. | $ 171,000 | $ 82,080 | $ 42,750 |
| b. | 165,600 | 28,152 | 59,616 |
| c. | 145,350 | 30,524 | 61,047 |
| d. | 174,100 | 8,705 | 83,568 |
Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
