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2. A company’s fixed interest expense is $8,000, its income before interest expense and income tax is $32, 000. Its net income is $9,600. The company’s time interest earned ration equals? 3. An employee earned $4,300 working for an employer. The current rate for FICA Social Security is 6.2% and the rate for FICA Medicare 1.45%. The employer’s total FICA payroll tax for this employee is? 4. A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows if $500,000 and average total assets of $2,500,000. The cash flow on total assets ration equals?

2. A company’s fixed interest expense is $8,000, its income before interest expense and income tax
is $32, 000. Its net income is $9,600. The company’s time interest earned ration equals?

 

3. An employee earned $4,300 working for an employer. The current rate for FICA Social Security is
6.2% and the rate for FICA Medicare 1.45%. The employer’s total FICA payroll tax for this
employee is?
4. A company had net cash flows from operations of $120,000, cash flows from financing of
$330,000, total cash flows if $500,000 and average total assets of $2,500,000. The cash flow on
total assets ration equals?

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