Financial statements for Harwich Company for the most recent year appear below: The balances in the Cash, Accounts Receivable, Inventory, Bonds Payable, Common Stock, and Additional Paid-In Capital accounts are unchanged from the beginning of the year. A $0.75 per share dividend was declared and paid during the year. On December 31, Harwich Company's common stock was trading at $24.00 per share.
-Harwich Company's times interest earned ratio for the year was closest to:
A)11.0
B)10.5
C)12.0
D)22.0

Question

Financial statements for Harwich Company for the most recent year appear below:   The balances in the Cash, Accounts Receivable, Inventory, Bonds Payable, Common Stock, and Additional Paid-In Capital accounts are unchanged from the beginning of the year. A $0.75 per share dividend was declared and paid during the year. On December 31, Harwich Company's common stock was trading at $24.00 per share.
-Harwich Company's times interest earned ratio for the year was closest to:
A)11.0 
B)10.5 
C)12.0 
D)22.0

Quizplus · Accepted Answer

Times interest earned = Earnings before interest expense and income taxes F1F1F1S1F1F1F10 Interest expense
= $110 F1F1F1S1F1F1F10 $10 = 11.0

Financial Statements for Harwich Company for the Most Recent Year