ACC 400 Course Great Wisdom / tutorialrank.com ACC 400 Course Great Wisdom / tutorialrank.com | Page 11
12.
c.
times interest earned ratio.
d.
asset turnover ratio.
The times interest earned ratio is computed by dividing
a.
net income by interest expense.
b.
income before income taxes by interest
c.
income before interest expense by interest
expense.
expense.
d.
income before interest expense and income
taxes by interest expense.
13.
The 2007 financial statements of Shadow Co. contain the
following selected data (in millions).
Current Assets
$ 75