Company times interest earned problem


Last year Javer Company had a net income of $200,000, income tax expense of $74,000, and interest expense of $20,000. The company's times interest earned was closest to:

a) 10.00 times.

b) 11.00 times.

c) 5.30 times.

d) 14.70 times.

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Accounting Basics: Company times interest earned problem
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