Answer Multiple Choice Question 207 In a recent year Pina Co

Answer: Multiple Choice Question 207 In a recent year Pina Colada Corp. had net income of and income tax expense of $41300. What was Pina Colada Corp\'s times interest earne (rounded) for the year? 151000, interest expense of saason a. 6.75 b. 6.30 c. 7.75 d. 5.30 Answer:

Solution

EBIT = Net Income+Income tax expense+Interest expense = 151000+41300+28500 = 220800 Times interest earned = EBIT/Interest expense = 220800/28500 = 7.75 Answer: Option [c]