Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. $$\begin{array} { | l | r | }
\hline & \
\hline \text { Interest expense } & \$ 9,100 \
\hline \text { Income tax expense } & 22,700 \
\hline \text { Net income after tax } & 56,500 \
\hline
\end{array}$$
A) 9.7.
B) 8.7.
C) 3.7.
D) 2.5.
E) 6.2.

Question

Refer to the following selected financial information from Graphics, Inc. Compute the company's times interest earned. $$\begin{array} { | l | r | } 
\hline & \
\hline \text { Interest expense } & \$ 9,100 \
\hline \text { Income tax expense } & 22,700 \
\hline \text { Net income after tax } & 56,500 \
\hline
\end{array}$$
A) 9.7.
B) 8.7.
C) 3.7.
D) 2.5.
E) 6.2.

Quizplus · Accepted Answer

Times interest earned = Net income after tax / Interest expense= 56,500 / 9,100= 6.2

Refer to the Following Selected Financial Information from Graphics, Inc