Desjardin Landscaping's income statement reports net income of $73,700, which includes deductions for interest expense of $10,700 and income taxes of $33,300. Its times interest earned is:a) 10.4 times b) 7.4 times c) 4.0 times c) 6.4 times d) 16 times

Question

Mathematics

Eleanor Martinez

25 April, 18:04

Desjardin Landscaping's income statement reports net income of $73,700, which includes deductions for interest expense of $10,700 and income taxes of $33,300. Its times interest earned is:a) 10.4 times b) 7.4 times c) 4.0 times c) 6.4 times d) 16 times

+5

Answers (1)

Know the Answer?

Boo Bear · Answer 1

11 times

Step-by-step explanation:

To calculate the interest earned with respect to the initials, what you owe is to add up all the income to the company, in this case the net profit that is 73700, plus the interest that is 10700 and income taxes of 33300. That sum is divided by the value of interest and will give the number of times the interest was earned. As follows:

(73700 + 10700 + 33300) / 10700 = 11 times

The answer would be 11 times he has earned interest.