70.2K
Verified Solution
Link Copied!
The Grant Company reported the following income for 2014:
| Sales | $ | 145,000 |
| Cost of goods sold | | 87,500 |
| | | |
| Gross margin | $ | 57,500 |
| Selling and administrative expense | | 30,000 |
| | | |
| Operating income | $ | 27,500 |
| Interest expense | | 6,500 |
| | | |
| Income before taxes | $ | 21,000 |
| Income tax expense | | 6,300 |
| | | |
| Net income | $ | 14,700 |
| | | |
What is the company's number of times interest is earned ratio? (Round your final answer to 1 decimal place.)
2.3 times
3.2 times
4.2 times
None of these answers is correct.
Answer & Explanation
Solved by verified expert
