Cases Unlimited reported operating income of $780,000, interest expense of $120,000, and net income of $575,000. The

Question:

Cases Unlimited reported operating income of $780,000, interest expense of $120,000, and net income of $575,000. The weighted-average number of shares of common stock outstanding during the year was 100,000 shares. What is the times-interest-earned ratio? (Round your final answer to two decimal places.)

a. 4.79

b. 5.79

c. 6.50

d. 7.50

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...

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