What is the times-interest-earned ratio

Reference no: EM131975535

Question: A firm has net income before interest and taxes of $176,000 and interest expense of $26,200.

a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.)

b. If the firm's lease payments are $42,800, what is the fixed charge coverage? (Round your answer to 2 decimal places.)

Reference no: EM131975535

Questions Cloud

Which product line is more profitable for zippyzippy : Which product line is more profitable for ZippyZippy? Compute the gross profit per wheel if managers rely on the ABC unit cost data.

Do you prefer to lease or buy the machine : A firm needs new copy machine. You can purchase a new one for $30000, or you can lease one for three years for a monthly lease payment of $800.

Show the cash flows for the problem : A firm needs to replace its the garage doors at its loading dock area. Two options are available. A Deluxe mode] costs $4500 and has an expected life of 9 years

Prepare an adjusted set of financial statements if necessary : Prepare an adjusted set of financial statements if necessary. Based on these two statements, what would you advise the investor?

What is the times-interest-earned ratio : A firm has net income before interest and taxes of $176,000 and interest expense of $26,200. What is the times-interest-earned ratio?

Demonstrate the calculation process : LEGL300 TAXATION LAW - Demonstrate the calculation process for determining Kevin's tax liability for the year ended 30 June 2017, and explain your treatment

Compute the number of preferred shares that were issued : ACC 206 Assignment - Star Corporation issued both common and preferred stock during 20X6. Compute the number of preferred shares that were issued during 20X6

What will the new earnings per share be : A firm has a market value equal to its book value. Currently, the firm has excess cash of $300 and other assets of $6, 200. Equity is worth $5,000.

Record retirement of bonds without using a discount account : The bonds have a current book value of $1,157,000. Record the retirement of the bonds without using a discount account.

User Account

All Pages