In a recent year Hart Corporation had net income of $125,000, interest expense of $30,000, and...

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Answer 1

Answer #1

Earnings before interest and taxes(balance)(165,000+30,000)	195,000
Less:interest expense	30,000
EBT(125,000+40,000)	165,000
Less:tax expense	40,000
Net income	125,000

Times interest earned=Earnings before interest and taxes/interest expense

=195,000/30,000

=6.5

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Answer 2

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