D F Clipboard Font Alignment Number Styles D8 3 X fx A B E G 1 Problem 7-10 H 2 3 INPUT 4 Debt outstanding $ 600,000 5 Interest rate 8.0% 6 Annual sales $ 3,000,000 7 Tax rate 40.0% 8 Net profit margin on sales 3.0% 9 10 OUTPUT 11 TIE ratio 3.08 X you will need to complete the income statement calculations below to solve for the TIE ratio 12 13 Sales 14 You do not have the information to complete these cells. You will have to Costs work from the bottom of the income statement up to EBIT 15 Depreciation 16 EBIT 4. Now solve for EBIT 17 Interest expense 57,600 3. Using the debt outstanding and the Interest rate on debt, solve for the interest expense 18 EBT 2. Using net income and the tax rate, solve for EBT 19 Taxes optional as this value is not needed in final calculations 20 Net Income 1. Start here - calculate net income from the information above 21 22 23 24 25 26 27 28 29 30 31 32 Problem 7.0 Problem 7.10 Penhlem 7.12