6. Times-interest-earned (TIE) ratio The times-interest-earned (TIE) ratio shows how well a firm can cover its interest payments with operating income. Compare the income statements of Black Sheep Broadcasting Company and Happy Turtle Transporters Incorporated and calculate the TIE ratio for each firm. Complete the following statement, based on the calculations you have already made. Describe the relationship between the TIE ratios of the two companies. Biack Sheep Broadcasting Company has a greater TIE ratio than Happy Turtle Transporters Incorporated. Happy Turtle Transporters incorporated has a greater TIE ratio than Black Sheep Broadcasting Company. The companies have equal TIE ratios: Complete the following statement, based on the calculations you have already made. Describe the relationship between the TIE ratios of the two companies. Black Sheep Broadcasting Company has a greater TIE ratio than Happy Turtle Transporters Incorporated. Happy Turtle Transporters Incorporated has a greater TIE ratio than Black Sheha Broadcasting Company. The companies have equal TIE ratios. Which company is in better position to cover its interest payments, and therefore exhibits lower risk, than the other? Black Sheep Broadcasting Company is in a better position to cover its interest payment. Happy Turtle Transporters Incorporated is in a better position to cover its interest payment. Both companies are equally positioned to cover their interest payments