What is its times-interest-earned ratio

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Reference no: EM132074298

1. A firm has just ended the calendar year with sales of $150,000 worth of merchandise that was purchased during the year at a cost of $112,500. Although the firm paid in full for the merchandise during the year, it has yet to collect on any of the sales during the year. The gross profit and the cash flow for the year are

$0 and $150,000, respectively.

$37,500 and -$150,000, respectively.

$37,500 and -$112,500, respectively.

$150,000 and $112,500, respectively.

2. Which ratio calculates the amount of sales generated by each $1 of debt and equity invested in the firm

Thomson Trucking has $21 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 14%, and its return on assets (ROA) is 4%. What is its times-interest-earned (TIE) ratio? Round your answer to two decimal places.

Reference no: EM132074298

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