ABC Company had Net Income during the period of $60,000 after Income Taxes of $40,000. Furthermore, the company had outstanding Notes Payable at the beginning and end of the year, respectively, of $250,000 and $350,000. If interest expense was $15,000 during the period, what is the company’s TIE ratio?
Master Ratios: Times Interest Earned (TIE) with a bite sized video explanation from Brian Krogol
Start learning© 1996–2023 Pearson All rights reserved.