For the FY 2018, Frederick Company had net sales of $1,100,000 and net income of $75,000,...
For the FY 2018, Frederick Company had net sales of $1,100,000 and net income of $75,000, paid income taxes of $20,000, and had before tax interest expense of $12,500. Use this information to determine the Times Interest Earned Ratio. (Round your answers to one decimal place)
Homework Answers
Net income = $75,000
Income tax expense = $20,000
Interest expense = $12,500
Times interest earned ratio = [Net income + Income tax expense + Interest expense ]/Interest expense
= [75,000 + 20,000 + 12,500]/12,500
= 107,500/12,500
= 8.6
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For the FY 2018, Frederick Company had net sales of $1,100,000
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