What is the firm's TIE? Exhibit for questions # 40-50 The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over 2015 Balance Sheet (Millions of 5) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $ 2,500 11,500 16.000 $30,000 $20.000 $50,000 $ 9,500 5,500 7.000 $22,000 Long-term bonds Total liabilities $15.000 $37.000 Common stock $ 2,000 Retained earnings Total common equity Total liabilities and equity 11.000 $13.000 $50,000 2015 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income $87,500 81,813 1.531 $ 4,156 1,375 $ 2,781 973 $ 1,808 500.00 $632.73 Other data: Shares outstanding (millions) Common dividends Int rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 6.25% 35% $43.39 O a. 2.20 Ob. 2.45 OC. 2.72 d. 3.02 e. 3.33