Net income after tax was $400,000 and Income Tax Exp 140,000 & Interest paid was $60,000. What is the times interest earned? a. 6.7 b. 9.0 c. 10.0

Times Interest Earned = EBIT / Interest Expense

in this case EBIT = $ (400000+140000+60000) = $600000

Therefore, times interest earned would be600,000 /60,000 =10 Times 

Also known as Interest Coverage Ratio

c

option b is the correct answer

Option C is correct answer >>>

Income before Tax was=600000 (Tax+Interst+Net Income after tax)

So, Interst X100/Income before tax & Interst paid

60000 x100 /600000=10%

C.10

I agree with Mr.  Malik :)