Calculate the Times Interest Earned Ratio for Tierre's Ts, Inc

Calculate the times interest earned ratio for Tierre's Ts, Inc. using the following information. Sales = $200,000, cost of goods sold = $50,000, depreciation expense = $13,000, addition to retained earnings = $70,000, dividends per share = $0.50, tax rate = 30 percent, and number of shares of common stock outstanding = 1,000. Tierre's Ts has no preferred stock outstanding.

A) 0.1814
B) 0.4854
C) 0.685
D) 3.7756

Correct Answer:

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