Question - Pauk Corporation has provided the following data from its most recent income statement:
Net operating income.......................$87,000
Interest expense............................35,000
Net income before taxes.....................52,000
Income taxes................................16,000
Net income.................................$36,000
The times interest earned ratio is closest to:
A) 2.49
B) 3.55
C) 1.03
D) 1.49