Company times interest earned problem
Last year Javer Company had a net income of $200,000, income tax expense of $74,000, and interest expense of $20,000. The company's times interest earned was closest to:
a) 10.00 times.
b) 11.00 times.
c) 5.30 times.
d) 14.70 times.
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Granger Company had $180,000 in sales on account last year. The beginning accounts receivable balance was $10,000 and the ending accounts receivable balance was $18,000. The company's average collection period (age of receivables) was closest to:
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