Ask Question
16 March, 08:57

Belkorp had a net income of $100,000 paid income taxes of $30,000 and incurred interest expense of $8,000 what was that times interest earned ratio

+4
Answers (1)
  1. 16 March, 09:06
    0
    Formula for times interest earned: Income before interest and taxes / interest expense

    Because net income already has the amounts of $30,000 and $8,00 deducted from the amount, you would need to add those back in order to achieve the income before interest and taxes. Once doing so you should have $138,000 which you divide by the interest expense, $8,000.

    138,000/8,000=17.25 times
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Belkorp had a net income of $100,000 paid income taxes of $30,000 and incurred interest expense of $8,000 what was that times interest ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers