ABANTI’s 2019 were $435,000, the operating costs were $362,500,and the interest charges were $12,500.Calculate...

ABANTI’s 2019 were $435,000, the operating costs were $362,500, and the interest charges were $12,500.

Calculate the times-interest-earned (TIE) ratio?

Expert Solution

TIE Ratio = EBIT / Int

EBIT = Sales - Operating COst

= $ 435000 - $ 362500

= $ 72500

TIE Ratio = EBIT / Int

= $ 72500 / $ 12500

= 5.8 Times

jeff jeffy answered 2 years ago

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