Question

A company had interest expense of $4,800, income before interest expense and income taxes of $17,200, and net income of $7,600. The company's times interest earned ratio equals:

Answer 1

3.58

Step-by-step explanation:

A company has an interest expense of $4,800

Income tax is $17,200

Net income is $7,600

Therefore the company times interest earned ratio can be calculated as follows

= 17,200/4,800

= 3.58

Hence the company times interest earned ratio is 3.58