Hsu Company Reported the Following on Its Income Statement Interest Expense Was $80,000

Hsu Company reported the following on its income statement: $\begin{array}{lr}\text { Income before income taxes } & \$ 420,000 \\\text { Income tax expense } & \$ 120,000 \\\text { Net income } & \$ 300,000 \\\end{array}$
Interest expense was $80,000. Hsu Company's times interest earned ratio is

A) 8 times
B) 6.25 times
C) 5.25 times
D) 5 times

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free