Compute the times interest earned for Zelma Company, which reports income before interest expense and income taxes

Question:

Compute the times interest earned for Zelma Company, which reports income before interest expense and income taxes of $1,044,000, and interest expense of $145,000. Interpret its times interest earned (assume that its competitors average a times interest earned of 4.0).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: