Use the following information from separate companies a

Question

Question: Use the following information from separate companies a through f to compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?

      Net Income (Loss)                  Interest Expense                   Income Taxes

a.         $140,000                               $48,000                            $ 35,000

b.          140,000                                  15,000                              50,000

c.          140,000                                    8,000                              70,000

d.          265,000                                   12,000                            130,000

e.            79,000                                   12,000                              30,000

f.            (4,000)                                   12,000                                   0