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A company had interest expense of $5,700, income before interest expense and income taxes of $17,800, and net income of $8,200. the company's times interest earned ratio equals:______.

Sagot :

A company had an interest expense of $5,700, income before interest expense and income taxes of $17,800, and net income of $8,200. the company's times interest earned ratio equals 3.12 times.

The values given in the question are as follows:

Fixed Interest Expense = $5700

Income before Interest Expenses and Income taxes = $1780

The calculations for computing Times Interest Earned Ratio are as follows:

Times Interest Earned Ratio = Income before Interest Expense and Income taxes / Interest Expense

 = 17800 / 5700

    = 3.12 times

Hence, the answer is "3.12".

Learn more about Interest here: https://brainly.com/question/24924853

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