Solution-What is the times-interest-earned ratio

What is the times-interest-earned ratio

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Reference no: EM133127914

Question - Use the following information to answer the questions:

Assets		Liabilities and Equity
Cash	12,000	Accounts payable	19,000
Marketable securities	2,000	Notes payable	6,000
Accounts receivable	7,000	Current liabilities	25,000
Inventory	39,000	Long-term debt	95,000
Current assets	60,000	Total liabilities	120,000
Machines	34,000	Paid-in capital	20,000
Real estate	80,000	Retained earnings	34,000
Net fixed assets	114,000	Equity	54,000
Total assets	174,000	Total liab. & equity	174,000

Line item	Value
Sales	82,000
- Costs	67,240
- Depreciation	2,000
= EBIT	12,760
- Interest	800
= Taxable income	11,960
- Taxes	3,947
= Net income	8,013

Required - What is the times-interest-earned ratio?

Reference no: EM133127914

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What is the times-interest-earned ratio : Question - Use the following information to answer the questions: What is the times-interest-earned ratio

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What is the times-interest-earned ratio

Reference no: EM133127914

Reference no: EM133127914

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