The following presents the balance sheet for Firm K, along with information from the income...
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Accounting
The following presents the balance sheet for Firm K, along with information from the income statement. If the interest rate charged on Firm K's LT debt is 5%, and 0% for short-term debt, what is the times-interest-earned ratio?
- Total Assets: 2,000 Income Statement Information
- Current Assets: 600 Revenue: 3,500
- Cash: 100 EBIT: 800
- Receivables: 200 Net Income: 200
- Inventory: 300
- Noncurrent Assets: 1,400
- Net PP&E: 1,100
- Other NCA: 300
- Current Assets: 600 Revenue: 3,500
- Total Liabilities: 1,500
- Current Liabilities: 700
- Current Debt: 250
- Payables: 300
- Accruals: 150
- Noncurrent Liabilities: 800
- Long Term Debt: 800
- Current Liabilities: 700
- Total Equity: 500
- Common Stock 400
- Retained Earnings 100
A.10.0
B15.0
C.20.0
D.5.0
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