Question 30 3.03 pts The formula for determining the number of times interest ch

Question

Question 30 3.03 pts The formula for determining the number of times interest charges earned is Income before Income Tax Interest Expense/Interest expense. Assume that the Interest Expense for Shine, Inc. for the Year Ended December 31, 2011, is $25,000. Assume further that Income before Income Taxes is $395,000, Income Taxes is $150,000 and Net Income is $245,000. What is the number of times interest charges are earned for Shine, Inc. for the Year Ended December 31, 2011? 9.8 O 10.8 O16.8 O $25,000

Explanation / Answer

Number of times interest charges = (395000+25000)/25000= 16.8 Option 3 is correct

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