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Assume that Verizon Communications, Inc. reports the following selected balance sheet and income statement information for 2012 through 2014 ($ millions).

Total Current Assets Total Current Liabilites Pretax Income Interest Expense Total Liabilities Stockholders' Equity
2012 $18,293 $26,570 $6,344 $2,797 $108,154 $57,814
2013 19,479 23,159 12,521 2,384 103,345 62,613
2014 16,448 25,063 13,652 2,180 74,942 66,434
Compute times interest earned for 2014. Select one: A. 5.26 B. 6.26 C. 7.26 D. 4.26

1 Answer

4 votes

Answer:

TIE 6.26238

Step-by-step explanation:

Times Interest Earned:


(EBIT)/(Interest \: Expense) = 6.26238

EBIT = earnings before Interest and Taxes


(13,652)/(2,180) = 6.26238

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