Income before income tax $8,000,000
Interest expense 500,000
Determine the number of times interest charges are earned.
Answer:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiEanzKlblGKnFkEnCmlIw6pFVS-8gfmkFof9QWKti4YQz67Rcsj_9rpn2ssQC6LPzpkvUaEmzZ1VrihpyVIJ6coynpW7A-LqZX2-QMiXI101AxoYvUc09rW9Jy711Y_f7FVFaIVC9dF-9d/s640/IMG_4308.jpeg)
Income Before Income Tax +
Interest Expense
Interest Charges Are Earned =
Number of Times
Interest Expense
$8,000,000 + $500,000
Interest Charges Are Earned =
Number of Times
Interest Charges Are Earned =
17.0
A company reports the following:
Income before income tax $4,000,000
Interest expense 400,000
Determine the number of times interest charges are earned.
Answer:
Income Before Income Tax + Interest Expense Interest Charges Are Earned Number of Times Interest Charges Are Earned = Number of Times Interest Expense $4,000,000 + $400,000 $400,000 Interest Charges Are Earned = 11.0
Income before income tax $4,000,000
Interest expense 400,000
Determine the number of times interest charges are earned.
Answer:
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCZYyE1cBKO0HMwJJ0ZWY8t92cUTq5eMSEfcZ56FY8qODdf9q43wPbFiDqJVIENjab4fcc4Ui2Ew202NhpwHkdZe2kV323fS9ZuDxqrG27yoKXSbMoueh7iL_hCrhS8DJqRSjnjKP7Q9p7/s640/IMG_4307.jpeg)
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