The following information is from the financial records of Newton Company for Year 2:
Required:Calculate the number of times interest is earned for Newton in Year 2. Round your answer to one decimal place.
What will be an ideal response?
6.8 times
Number of times interest is earned = Earnings before interest and taxes ÷ income tax expense
Earnings before interest and taxes = $104,000 + $46,000 + $26,000 = $176,000
Number of times interest is earned = $176,000 ÷ $26,000 = 6.8 times
You might also like to view...
Which of the following is among the things that a plaintiff must show in order to establish a prima facie case of disparate treatment in a pretext case?
a. proof that the employer intended to discriminate b. proof that the employer's stated motive is not credible c. statistical evidence of discriminatory effects d. all of the above e. none of the above
Why are prepayments of minor importance for automobile loan-backed securities?
What will be an ideal response?
Bisha created a new recipe for a sandwich spread and applied for a patent to protect her trade secret. She is likely to receive this patent
Indicate whether the statement is true or false
Rumors are most likely to spread through
A. e-mail. B. formal communication channels. C. the grapevine. D. vertical channels. E. written communication.