2 3 4 5 6 Name: Jatin Sumamedhola Group STABD21 Task 1 The firm has 500,000 of debt outstanding, and it pays an interest rate of 10% annually. The firm's annual sales are 2,000,000, its average tax rate is 30%, and its net profit margin on sales is 5%. a) Determine the firm's other financials, and complete the table below Selected Profit and Loss Account Data Net Sales 2,000,000 Eamings before interest and tax Interest charge Eamings before tax Taxes Net income (show calculations in the spaces provided) 3 b) Assume that the firm is considering borrowing additional funds from a local bank. However, if the firm does not maintain its times interest earned (TIE) ratio of at least 5 times, its bank will refuse to renew the loan. What is the firm's TIE ratio? Will the bank renew the loan next year? CS