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Use the following information from separate companies a through f: Net Income (Loss) Interest Expense Income Taxes $115,000 110,000 100,000 235,000 59,000 (5, 000) $44,000
Use the following information from separate companies a through f: Net Income (Loss) Interest Expense Income Taxes $115,000 110,000 100,000 235,000 59,000 (5, 000) $44,000 16,000 12,000 14,000 14,000 10,000 $35,000 50,000 70,000 130,000 30,000 Compute times interest earned. Times Interest Earned Ratio Company Choose Numerator: Choose Denominator: Ratio times times times times times times Which company indicates the strongest ability to pay interest expense as it comes due? Company a Company b
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