1.Thomson Company reported the following on its income statement:
Income before income taxes $420,000
Income tax expense 120,000
Net income $300,000
An analysis of the income statement revealed that interest expense was $40,000. Thomson Company's number of times interest charges are earned was
a. 7.5 times.
b. 9.5 times.
c. 8 times.
d. 11.5 times.
2. Which intangible assets are amortized over their useful life?
- Patents
- Goodwill
- Trademarks
- All of these
3. If net income is $130,000 and interest expense is $40,000 for 2011, what are the earnings per share on common stock for 2011 (rounded to two decimal places)?
- $2.68
- $2.32
- $2.02
- $2.17