1. A firm has an interest expense of $20,000, net sales of $1 million, a tax rate of 30 percent, and a net profit margin of 3.5 percent. If the company receives an interest income of $10,000, what is the firm's times-interest-earned (TIE) ratio? SHOW WORK ON EXCEL!

A) 1

B) 2

C) 3

D) 5

E) 6

F) None of the above (state your answer) Please explain why!