Broch Corporation's Income Statement Appears Below The Company's Times Interest Earned Ratio Is Closest To:
A)

Broch Corporation's income statement appears below:
$\begin{array}{lr}\text { Income Statement }\\\text {Sales (all on account) }&\$1,220,000\\\text {Cost of goods sold }&760,000\\\text { Gross margin}&460,000\\\text {Operating expenses. }&415,692\\\text {Net operating income }&44,308\\\text {Interest expense }&14,000\\\text {Net income before taxes }&30,308\\\text {Income taxes (35\%) }&10,608\\\text {Net income }&\$19,700\\\end{array}$
The company's times interest earned ratio is closest to:

A) 4.87
B) 1.41
C) 3.16
D) 2.16

Correct Answer:

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