1.
Current liabilities: Liabilities are debt and obligations of a business. Current liability is the obligation, which the company is responsible to pay the outsiders within a year.
Times-Interest-Earned ratio: It is the ratio that quantify a business ability to pay interest expense. It is calculated as shown below:
To prepare: The breakdown of Corporation T’s current liabilities at January 30, 2016.
2.
To calculate: Times-interest-earned ratio for Corporation T for the year ending January 30, 2016.
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