Instructions: Use the Present Value and Future Value Tables Included

Question 79
Multiple Choice

Instructions: Use the present value and future value tables included in Appendix 8 and on the textbook companion website. Hakeem, Inc. reported the following data in its 2011 financial statements: total liabilities $38,400; total stockholders' equity, $19,200; net income, $4,320; income tax expense, $2,880; and interest expense, $2,400. The times interest earned ratio is A) 4.0 times B) 1.8 times C) 2.8 times D) 3.0 times