Ask Question
BusinessBusiness
3 July, 08:42

In a recent year, Day Corporation had net income of $150,000, interest expense of $30,000, and tax expense of $20,000. What was Day Corporation's times interest earned for the year? a. 7.50 b. 5.00 c. 4.00 d. 6.67

+3
Answers (1)
  1. 3 July, 10:48
    0
    Option (D) is correct.

    Explanation:

    EBIT (balance) = Net income + interest expense + tax expense

    = $150,000 + $30,000 + $20,000

    = $200,000

    Earning before taxes = EBIT (balance) - interest

    = $200,000 - $30,000

    = $170,000

    Net income = Earning before taxes - tax expense

    = $170,000 - $20,000

    = $150,000

    Times interest earned = EBIT : Interest

    = $200,000 : $30,000

    = 6.67
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In a recent year, Day Corporation had net income of $150,000, interest expense of $30,000, and tax expense of $20,000. What was Day ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
For Megan's end-of-year performance appraisal, her supervisor solicited feedback from three of Megan's coworkers, the manager of the customer-service department, several of Megan's clients, and even a few employees in other departments with whom she
Answers (1)
On July 10, 2018, Johnson Corporation signed a purchase commitment to purchase inventory for $390,000 on or before February 15, 2019. The company's fiscal year-end is December 31.
Answers (1)
True or false? The best way to choose the right social media tool is to think about your business goals, then narrow down your choices based on that goal criteria.
Answers (1)
A food handler sneezes and then returns to work without washing hands. this is an example of
Answers (1)
When recording Manufacturing Overhead, it is acceptable to use only one account (for both actual and applied) or to use two separate accounts.
Answers (2)
New Questions in Business
Measures of central tendency and variability are calculated to describe the nature of charitable giving each year. These figures are computed for the "average" American citizen. Which of these is a possible value for the variance in dollars given? A.
Answers (1)
How do you get a business at the age of 13
Answers (2)
Use the following data to compute total factory overhead costs for the month: Sales commissions $ 12,200 Direct labor 41,000 Indirect materials 16,600 Factory manager salaries 8,600 Factory supplies 10,400 Indirect labor 7,700 Depreciation-office
Answers (1)
Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard).
Answers (1)
How to adjust tuxedo pants adjustable clip?
Answers (2)
Home » Business » In a recent year, Day Corporation had net income of $150,000, interest expense of $30,000, and tax expense of $20,000. What was Day Corporation's times interest earned for the year? a. 7.50 b. 5.00 c. 4.00 d. 6.67
Sign Up Forgot Password?