Income before income tax $8,000,000
Interest expense 500,000
Determine the number of times interest charges are earned.
Answer:
Income Before Income Tax +
Interest Expense
Interest Charges Are Earned =
Number of Times
Interest 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:
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
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