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E13-5 Computing a commonly Used Solvency Ratio (LO 13-4, LO 13-5) According to the producer price index database maintained b
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Answer #1

1) Calculate time interest earned :

Time interest earned = Earning before interest and tax/interest expenses

2015= 7200/580 = 12.4 (44,000-36,800=7,200)

2016= 18700/515 = 36.3 (57,300-38,600=18,700)

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