Answered: Brooklyn Machinery Inc. reported the…

Brooklyn Machinery Inc. reported the following for the year: Net income: $120,000 Interest expense: $30,000 ⚫ Income tax expense: $50,000 What is the Times Interest Earned (TIE) ratio for the year?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Question

Please provide the answer to this general accounting question using the right approach.

Brooklyn Machinery Inc. reported the following for the year:
Net income: $120,000
Interest expense: $30,000
⚫ Income tax expense: $50,000
What is the Times Interest Earned (TIE) ratio for the year?

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