Short Answer Questions
139. A company had income before interest expense and income taxes of $176,000 and its interest expense is $55,000. Calculate the company's times interest earned ratio.
140. A company's income before interest expense and income taxes is $302,400 and its interest expense is $72,000. Calculate the company's times interest earned ratio.
141. A company's income before interest expense and income taxes in 2004 was $225,000 and $200,000 in 2005. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio and comment on its level of risk.
142. A company's income before interest expense and income taxes was $395,000 in 2004 and $427,000 in 2005. Its fixed interest expense was $125,000 for both years. Calculate the company's times interest earned ratio and comment on its level of risk.
143. Home Depot had income before interest expense and income taxes of $5,909 million and interest expense of $37 million. Calculate Home Depot's times interest earned ratio.