Question

A company's had fixed interest expense of $5,000, its income before interest expense and income taxes is $17,000, and its net income is $9,400. the company's times interest earned ratio equals:

Answer 1

A company's had fixed interest expense of $5,000, its income before interest expense and income taxes is $17,000, and its net income is $9,400. the company's times interest earned ratio equals to 3.4 times. $17000 / $ 5000 = 3.4 times

Answer 2

Answer:

3.4

Explanation:

Times Interest Earned Ratio = income before interest expense and income taxes / interest expense

17,000 / 5,000 = 3.4