The following financial statement information is available for Long Corporation: The times interest earned for 2017 is
A) 7.4 times.
B) 6.4 times.
C) 9.1 times.
D) 7.8 times.

Question

Quizplus · Accepted Answer

The times interest earned ratio is calculated by dividing earnings before interest and taxes (EBIT) by the interest expense. If the specific financial figures were provided, the calculation would involve using those figures to determine the correct ratio. Given the choices, without the specific figures, the correct answer is chosen based on the information provided in the question, which in this case is C) 9.1 times, assuming this was calculated from the provided financial statement information of Long Corporation.

The Following Financial Statement Information Is Available for Long Corporation