Thomson Company Reported the Following on Its Income Statement An Analysis of the Income Statement Revealed That Interest Expense

Multiple Choice

Thomson Company reported the following on its income statement: $\begin{aligned}\$ 420,000 & \text { Income before income taxes } \\120,000 & \text { Income tax expense } \\\$ 300,000 & \text { Net income }\end{aligned}$
An analysis of the income statement revealed that interest expense was $40,000. Thomson Company's number of times interest charges are earned was:

A) 8 times.
B) 7.5 times.
C) 9.5 times.
D) 11.5 times.