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29 August, 15:44

Desjardin Landscaping's income statement reports net income of $75,300, which includes deductions for interest expense of $11,500 and income taxes of $34,900. Its times interest earned is:10.6 times7.5 times4.0 times6.5 times0.15 times

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  1. 29 August, 15:57
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    10.6 times

    Explanation:

    The formula to compute the times interest earned ratio is shown below:

    Times interest earned ratio = (Earnings before interest and taxes) : (Interest expense)

    where,

    Earnings before interest and taxes = Net income + Interest expense + income tax

    = $75,300 + $11,500 + $34,900

    = $121,700

    And, the interest expense = $11,500

    Now put these values to the above formula

    So, the ratio would equal to

    = $121,700 : $11,500

    = 10.6 times
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