Answered

IDNLearn.com makes it easy to get reliable answers from experts and enthusiasts alike. Get the information you need from our community of experts who provide accurate and thorough answers to all your questions.

An analysis of the income statement revealed that interest expense was $100000. Waterway Company's times interest earned was

Sagot :

Parrainidn

Answer: 8.3

Explanation:

The times interest earned is used to estimate the ability of a company to pay its debt payments using income from operations.

It is calculated by the formula:

= Earnings before interest and tax / Interest expense

Earnings before interest and tax:

= Earnings before tax + Interest expense

= 730,000 + 100,000

= $830,000

Times interest earned:

= 830,000 / 100,000

= 8.3

View image Parrain
Thank you for participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. IDNLearn.com has the answers you need. Thank you for visiting, and we look forward to helping you again soon.