Ratios: Times Interest Earned (TIE) Video Lessons

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Problem: The following information is available from the company's financial statements: cash $40,000, net income $450,000, interest expenses $40,000, depreciation expense $30,000, and income tax expense $20,000. What is the times interest earned? A.11.25 B.12.25 C.13.00 D.14.50 E.None of the above

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Problem Details

The following information is available from the company's financial statements: cash $40,000, net income $450,000, interest expenses $40,000, depreciation expense $30,000, and income tax expense $20,000. What is the times interest earned?

A.11.25

B.12.25

C.13.00

D.14.50

E.None of the above

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Our tutors rated the difficulty ofThe following information is available from the company's fi...as medium difficulty.