The following information is taken from the financial statements of Burton Industries: $\begin{array}{lr}
\text { Total Assets } & \$ 360,000 \
\text { Total Liabilities } & 162,000 \
\text { Total Stockholder's' Equity } & 198,000 \
\text { Net Income } & 126,000 \
\text { Income Tax Expense } & 37,800 \
\text { Interest Expense } & 9,000
\end{array}$ The company's times interest earned ratio is:
A)19.2.
B)4.7.
C)15.0.
D)18.2.

Question

Quizplus · Accepted Answer

Times interest earned ratio = Net income / Interest expense= 126,000 / 9,000= 14

The Following Information Is Taken from the Financial Statements of Burton