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The following data have been gathered from the financial statements of General Nutrition Centers: 3. Calculate the times inte

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Answer #1

TIE = EBIT / interest expense

2016 = 290,494 / 47,613 = 6.10 times

2017 = 177,295 / 74,321 = 2.39 times

TIE measures the adequacy of EBIT to meet interest expense obligations. A higher ratio means better ability to meet interest obligations out of operating income.

D - the company is less able to meet interest obligations because the interest coverage fell

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