In a recent year, Vortex Industries had a net income of $180,000, an interest expense of $45,000, and an income tax expense of $25,000. What was Vortex Industries' times interest earned (TIE) ratio for the year? A] 4.56 B) 6.22 C) 5.67 D) 5.00

In a recent year, Vortex Industries had a net income of $180,000, an interest expense of $45,000, and an income tax expense of $25,000. What was Vortex Industries' times interest earned (TIE) ratio for the year? A] 4.56 B) 6.22 C) 5.67 D) 5.00

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 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Question

Ration of the year ? Financial accounting

In a recent year, Vortex Industries had a net income of $180,000, an interest
expense of $45,000, and an income tax expense of $25,000. What was Vortex
Industries' times interest earned (TIE) ratio for the year?
A] 4.56
B) 6.22
C) 5.67
D) 5.00

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