Times-Interest-Earned Ratio

The Morrit Corporation has $450,000 of debt outstanding, and it pays an interest rate of 9% annually. Morrit's annual sales are $3 million, its average tax rate is 25%, and its net profit margin on sales is 5%. If the company does not maintain a TIE ratio of at least 3 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Morrit's TIE Ratio _____ ?

Current and Quick Ratios

Ace Industries has current assets equal to $10 million. The company's current ratio is 2.5, and its quick ratio is 1.9. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar.

Current liabilities: $

Inventories: $