Broch Corporation's income statement appears below: The company's times interest earned ratio is closest to:

A) 4.87
B) 1.41
C) 3.16
D) 2.16

Question

Broch Corporation's income statement appears below:   The company's times interest earned ratio is closest to:A)  4.87B)  1.41C)  3.16D)  2.16

Ganesh Bhure · Accepted Answer

Final Answer : C, Explanation :  Times interest earned ratio = (Net income + Interest expense + Income tax expense) / Interest expense= (200,000 + 60,000 + 120,000) / 60,000= 3.16

Broch Corporation's income statement appears below: The company's times interest earned ratio is closest to:

A) 4.87
B) 1.41
C) 3.16
D) 2.16

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