Lombardi Trucking Company Has the Following Data: Assets: $10,000; Profit

question 33

Multiple Choice

Lombardi Trucking Company has the following data: Assets: $10,000; Profit margin: 3.0%; Tax rate: 40%; Debt ratio: 60.0%; Interest rate: 10.0%; and Total assets turnover: 2.0.
What is Lombardi's TIE ratio?

• A) 0.95
• B) 1.75
• C) 2.10
• D) 2.67
• E) 3.45

---

Definitions:

Spending

The amount of money expended by individuals, businesses, or governments on goods and services.

Income

Cash inflows that occur on a routine basis, originating from employment or investing.

Resources

Refers to the inputs used in the production of goods and services, including natural, human, and capital resources.

Lower-Income Individuals

Persons or families who earn significantly less than the average income for their community or country, often facing financial challenges.