the profit 67000, the interest 3000 ,the cash flow of oprating activities 80000 .RST’s times interest earned ratio at the end of Year 6 is A. 23.33 times.
B. 14.67 times.
C. 14.33 times.
D. 13.33 times.
Answer (A) is correct . The formula for the times interest earned ratio is earnings before interest and taxes (EBIT) divided by interest expense. Interest was earned 23.33 times ($70,000/$3,000).
