Exercise 9-19 (Algo) Computing and interpreting times interest earned LO A1 Use the following information from separate companies a through d: Net Income (Loss) Interest Expense Income Taxes a. $ 108,000 $ 45,360 $ 27,000 b. 102,600 42,066 36,936 c. 91,800 26,622 38,556 d. 111,100 6,666 53,328 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.