Question: FINANCIAL ANALYSIS Using the following selected financial information for MFT Corporation, what is MFTs times' interest earned ratio? A. 4.51x B. 32.7x C. 17.58x D.
$550 $120 $100 MFT Corporation MFT Corporation Income Statement Statement of Cash Flow Information For the Year Ended December 31, 2019 For the Year Ended December 31, 2019 Cash from operating activities Net sales $12,760 Cost of goods sold 8,770 Investing activities: Capital expenditures Gross profit $3,990 Purchase of Land Operating expenses 1.345 Operating profit $2,645 Financing activities: Interest expense Proceeds from sale of common shares 122 Payments on long-term borrowing $250 Earnings before taxes $2,523 Payments of cash dividends $200 Income tax expense $378 Cash paid for interest $2,145 Net profit Cash paid for income taxes MFT Corporation Balance Sheet $80 $100 $145 12/31/2019 Current assets Cash Short-term investments Accounts receivable Inventory Total current assets Long-term assets Net PPE Goodwill Total long-term assets Total assets Liabilities and stockholders' equity Current liabilities $650 Accounts payable $855 150 Accrued liabilities 455 700 Total curent liabilities $1,310 1500 Long-term debt 1850 $3,000 Total liabilities $3,160 Stockholders' equity 3900 Common stock and PIC 4500 Retained earnings 1340 6000 Total stockholders' equity 5840 $9,000 Total liabilities and equity $9,000 2100
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