During 2010,Patty's Pizza reported net income of $4,212 million,interest expense of $167 million and income tax expense of $1,372 million.During 2009,they reported net income of $3,568 million,interest expense of $163 million and income tax expense of $1,424 million.What was the times interest earned ratio for 2010 and 2009 respectively?
A)32.2 and 29.4 times
B)28.4 and 23.8 times
C)34.4 and 31.6 times
D)34.1 and 26.6 times

Question

Quizplus · Accepted Answer

Times interest earned = (Net income + Interest expense + Income tax expense) F1F1F1S1F1F1F10 Interest expense2010 times interest earned (34.4) = ($4,212 + $167 + $1,372) F1F1F1S1F1F1F10 $1672009 times interest earned (31.6) = ($3,568 + $163 + $1,424) F1F1F1S1F1F1F10 $163

During 2010,Patty's Pizza Reported Net Income of $4,212 Million,interest Expense