For the FY 2018, Frederick Company had net sales of $900,000 and net income of $50,000,...
For the FY 2018, Frederick Company had net sales of $900,000 and net income of $50,000, paid income taxes of $20,000, and had before tax interest expense of $10,000. Use this information to determine the Times Interest Earned Ratio. (Round your answers to one decimal place
Homework Answers
Answer: Times Interest Earned ratio = 8.0 times
Calculations:
Net income before interest and Income tax = Net income + Income tax + Interest
= $50,000 + $20,000 + $10,000
= $80,000
Times interest Earned ratio = Net income before interest and income tax ÷ Interest expense
= $80,000 ÷ $10,000
= 8.0 times
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For the FY 2018, Frederick Company had net sales of
$900,000 and net income of $50,000,...
For the FY 2018, Frederick Company had net sales of $1,100,000 and net income of $75,000,...
For the FY 2018, Frederick Company had net sales of $1,100,000 and net income of $75,000, paid income taxes of $20,000, and had before tax interest expense of $12,500. Use this information to determine the Times Interest Earned Ratio. (Round your answers to one decimal place)
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