Ron Landscaping's income statement reports net income of $75,300,which includes deductions for interest expense of $11,500 and income taxes of $34,900.Its times interest earned is:

A) 10.6 times
B) 7.5 times
C) 4.0 times
D) 6.5 times
E) 0.15 times

Times Interest Earned

A financial metric indicating how many times a company's operating income can cover its interest expense, used to assess financial stability.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Interest Expense

The cost incurred by an entity for borrowed funds; interest expense is a non-operating cost shown on the income statement.