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Times interest earned is a valuable ratio to a vendor

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Reference no: EM13567695

Times Interest Earned is a valuable ratio to a vendor because it tells the vendor:

(a)whether the company makes enough operating profit to cover its interest expenses by enough to assure payment to the vendor.

(b)when to expect payment.

(c)how much interest the delinquent customer will actually pay.

(d)how often the company pays its interest bills each month.

Reference no: EM13567695

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