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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