Last year Jason Company had a net income of $250,000,income tax expense of $78,000,and interest expense of $30,000.The company's times interest earned was closest to:
A)4.73
B)9.33
C)11.93
D)8.33

Question

Quizplus · Accepted Answer

Times interest earned = Earnings before interest expense and income taxes F1F1F1S1F1F1F10 Interest expense
= ($250,000 + $78,000 + $30,000)F1F1F1S1F1F1F10 $30,000 = 11.93

Last Year Jason Company Had a Net Income of $250,000,income