Wayne,Inc.has net sales revenue of $348,800,cost of goods sold of $274,400,and net income of $2,400.If interest expense is $8,000 and income tax expense is $800,the times interest earned ratio is:
A)1.4.
B)0.33.
C)1.3.
D)0.40.

Question

Quizplus · Accepted Answer

Times interest earned = (Net income + Interest expense + Income tax)÷ Interest expense
= ($2,400 + $8,000 + $800)÷ $8,000 = 1.4

Wayne,Inchas Net Sales Revenue of $348,800,cost of Goods Sold of $274,400,and