Orono Corp

question 34

Multiple Choice

Orono Corp.'s sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500.What was the firm's times interest earned (TIE) ratio?

• A) 4.72
• B) 4.97
• C) 5.23
• D) 5.51
• E) 5.80

---

Definitions:

Displacement

In physics, the change in position of an object; in engineering, the volume swept by the pistons inside the cylinders of an engine.

Horsepower

A unit of measurement for power, traditionally used to quantify the output of engines or motors.

Sum Of Squares

A statistical tool that quantifies the variance within a set of numbers, measuring the dispersion from their mean.

Error

A discrepancy between a computed or measured value and the true value.