eBook Problem 3-10 Times-Interest-Earned Ratio The Morris Corporation has $650,000 of debt outstanding, and it pays an interest rate of 9% annually. Morris's annual sales are $3.25 million, its average tax rate is 30%, and its net profit margin on sales is 4%. If the company does not maintain a TIE ratio of at least 3 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places. Balance Sheet Analysis Complete the balance sheet and sales information in the table that follows for J. White Industries using the following financial data: Total assets turnover: 1.4 Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 24% Total liabilities-to-assets ratio: 40% Quick ratio: 1.20 Days sales outstanding (based on 365-day year): 37.5 days Inventory turnover ratio: 3.0 Do not round intermediate calculations. Round your answers to the nearest whole dollar. Partial Income Statement Information Sales Cost of goods sold Balance Sheet Cash Accounts receivable 50,000 Accounts payable Long-term debt Common stock Retained earnings Inventories Fixed assets 100,000 Total assets $ 400,000 Total liabilities and equity $