Exercise 9-14 Computing and interpreting times interest earned LO A1 Use the following information from separate companies a through f: Net Income (Loss) Interest Expense Income Taxes a. $ 163,000 $ 55,420 $ 40,750 b. 157,600 36,248 56,736 c. 166,100 8,305 79,728 d. 138,550 33,252 58,191 e. 105,950 22,250 40,261 f. (45,640 ) 97,213 0 Compute times interest earned.

Which company indicates the strongest ability to pay interest expense as it comes due?

• Company a

• Company b

• Company c

• Company d

• Company e

• Company f.

Listed below are a few transactions and events of Maxum Company.

1. Employees earn vacation pay at a rate of one day per month. During December, 33 employees qualify for one vacation day each. Their average daily wage is $300 per employee.
2. During December, Maxum Company sold 4,400 units of a product that carries a 60-day warranty. December sales for this product total $138,000. The company expects 6% of the units to need warranty repairs, and it estimates the average repair cost per unit will be $10.

Prepare any necessary adjusting entries at December 31, 2017, for Maxum Companys year-end financial statements for each of the above separate transactions and events.