FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A creditor has the following data from the income statement of freds and has request you to compute and explain the Times Interest Earned ratio(TIE)

A creditor has the following data from the income statement of freds and has request you to compute and explain the Times Interest Earned ratio(TIE) for him. I know the answer is 8.03. MY QUESTION IS: WHERE DOES THE 500 COMES FROM ??? Thank you for your help and explaination!

image text in transcribed
Net operating Income $2.570 Interest Expense 320 Net income before taxes 2.250 Income tax (409%) Net income $1.750

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Forensic And Investigative Accounting

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

10th Edition

0808056301, 9780808056300

More Books

Students also viewed these Accounting questions

Question

★★★★★
What is the conditional probability of regular, given high income? VIEWING FREQUENCY Regular Occasional Never Totals HIGH INCOME 0.10 0.10 0.05 0.25 MIDDLE INCOME 0.15 0.20 0.05 0.40 Low INCOME 0.05...

Answered: 1 week ago

Question

★★★★★
Go online to one of your favorite search engines (Yahoo!, Google, etc.), and enter the following search term: marketing research. From the results, access a directory of marketing research firms....

Answered: 1 week ago

Question

★★★★★
Contact person at the organization

Answered: 1 week ago

Question

★★★★★
Comparative income statements and balance sheets for Coca-Cola are shown below ($ millions). Required: a. Use the following ratios to prepare a projected income statement, balance sheet, and...

Answered: 1 week ago

Question

★★★★★
The process of data preparation by way of placing categorized data into tabular form is known as Conditional Formatting Categorization Tabulation Primarization Question 4 The addresses in the...

Answered: 1 week ago

Question

★★★★★
You've been hired by SlipStream Inc., a rapidly growing privately held company. After experiencing rapid growth, they're interested in an IPO. SlipStream Inc. understands that to do so, their...

Answered: 1 week ago

Question

★★★★★
The purpose of this research assignment is to have you, complete research on a topic that may have an impact on Strategic Planning in Supply Chain. Please add a maximum of three exhibits ( graphs,...

Answered: 1 week ago

Question

★★★★★
Five faculty members will be issued laptop computers with network interface controllers (NICS). The faculty members want to use their laptops in their classrooms and offices. There are also...

Answered: 1 week ago

Question

★★★★★
Google your state's Powerball or megamillions and calculate the probability of winning the jackpot. Most sites report odds instead of probability, so you'll need to do a simple conversion. Share a...

Answered: 1 week ago

Question

★★★★★
Many countries took issue with the U . S . system of antidumping laws, in part because historically, the U . S . Commerce Department almost always ruled in favor of the U . S . company that filed the...

Answered: 1 week ago

Question

★★★★★
An angle bracket is built inon one side and has a rectangular load applied to its sloped face as shown in the diagram. A B 1 lb/in T 6 in C 18 in 8 in What counterclockwise couple moment do we need...

Answered: 1 week ago

Question

★★★★★
A beauty supply store expects to sell 1 1 0 flat irons during the next year. It costs $ 1 . 2 0 to store one flat iron for one year. There is a fixed costof $ 1 6 . 5 0 for each order. Find the lot...

Answered: 1 week ago

Question

★★★★★
2. It is the results achieved that are important.

Answered: 1 week ago

Question

★★★★★
3. What is the difference between perception and assessment of a particular everyday situation? Give at least three examples.

Answered: 1 week ago

Question

★★★★★
7. One or other combination of 16.

Answered: 1 week ago

Previous Question Next Question