Oriole Company reported the following on its income statement: Income before income taxes $730000 Income tax...

Oriole Company reported the following on its income statement:

Income before income taxes	$730000
Income tax expense	270000
Net income	$460000

An analysis of the income statement revealed that interest expense was $100000. Oriole Company's times interest earned was

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Expert Solution

Income before interest and taxes(balance)(730,000+100,000)	830,000
Less:interest expense	100,000
Income before income taxes	730,000

TIE=Income before interest and taxes/Income before income taxes

=830,000/100,000

=8.3

ekkarill92 answered 1 year ago

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