Use the following information from separate companies a through d:Net Income (Loss) Interest Expense Income Taxes$117,000111,60099,450120, 100a.b.C.d.Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes dueTimes Interest InterestEarned Ratio CoverageCompute times interest earned.Complete this question by entering your answers in the tabs below.Company$46,80047,98836,7974,804abCd$29,25040,17641,76957,648Times Interest Earned RatioChoose Numerator:111111Choose Denominator:

TIMES INTEREST EARNED RATIOThe time interest earned ratio is the ratio between EBIT and interest…

Answered: Se the following information from…

Se the following information from separate companies a through d Net Income (Loss) Interest Expense Income Taxes $117,000 111,600 99,450 3. -1 4 120 $46,800 47,988 36,797 $29,250 40,176 41,769

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Use the following information from separate companies a through d:
Net Income (Loss) Interest Expense Income Taxes
$117,000
111,600
99,450
120, 100
a.
b.
C.
d.
Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due
Times Interest Interest
Earned Ratio Coverage
Compute times interest earned.
Complete this question by entering your answers in the tabs below.
Company
$46,800
47,988
36,797
4,804
a
b
C
d
$29,250
40,176
41,769
57,648
Times Interest Earned Ratio
Choose Numerator:
1
1
1
1
1
1
Choose Denominator:
<Times Interest Earned Ratio
H
=
II
=
=
-
II
Ratio
times
times
times
times
Interest Coverage >

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