Problem

Use the following information from separate companies a through  f to compute times intere...

Use the following information from separate companies a through  f to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?

 

Net Income (Loss)

Interest Expense

Income Taxes

a.

$140,000

$48,000

$ 35,000

b.

140,000

15,000

50,000

c.

140,000

8,000

70,000

d.

265,000

12,000

130,000

e.

79,000

12,000

30,000

f.

(4,000)

12,000

0

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