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  3. abc inc. earned a gross profit of $340,000 on sale

ABC Inc. earned a gross profit of $340,000 on sales of $1,200,000 during the year....

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Accounting

ABC Inc. earned a gross profit of $340,000 on sales of $1,200,000 during the year. The company also
had operating expenses of $180,000. Other expenses included interest expense of $40,000. The
company is subject to an effective income tax rate of 30%. What is the company's times interest
earned ratio for the year?
4.5 times
5 times
3.2 times
4 times
image

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