 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Peartree Company provides the following income statement for the year 2014:.
Peartree Company provides the following income statement:
Interest expense (1000) Net income before income tax 54,000 Income tax expense 5,000 Net income 49,000 How much is the times-interest-earned ration? |
||||
|
||||
|
The Times Interest Earned Ratio is:
Earnings before interest and tax divided by Interest Expense First you have to find your earnings before tax, so add your interest expense to income before tax to get your earnings before interest and tax. The other information you need is given to you. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
No. Account Title Debit Credit 101 Cash.. . $ 6,400 104 Short- term investments.. . 10,200 126 Supplies.. . 3,600 128 Prepaid insurance.. . 800 167 Equipment.. . 18,000 168 Accumulated depreciation— Equipment.. . $ 3,000 173 Building.. . 90,000 ...
Roberts Company prepared the following income statement using the cash basis of accounting: ROBERTS COMPANY Income Statement, Cash Basis Year Ended December 31, 2007 Service revenue (does not include $40,000 of services performed on account Because the collection will not be until 2008)...
During 2010, one of the customers of Bings Company declared bankruptcy. This customer had been a major purchases of Bings products and owed $40,000 on account to Bing (a material portion of its receivables) at the time of bankruptcy. As a result of bankruptcy, Bings had to write-off the entire...
View more questions Search
|
