Debt Management Ratios Calculate the Times Interest Earned Ratio for Tierre's

question 7

Multiple Choice

Debt Management Ratios Calculate the times interest earned ratio for Tierre's Ts, Inc. using the following information. Sales = $200,000, cost of goods sold = $50,000, depreciation expense = $13,000, addition to retained earnings = $70,000, dividends per share = $0.50, tax rate = 30%, and number of shares of common stock outstanding = 1,000. Tierre's Ts has no preferred stock outstanding.

• A) 0.1814
• B) 0.4854
• C) 0.685
• D) 3.7756

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Definitions:

Wernicke Area

A region of the brain important for language comprehension, located in the temporal lobe.

Broca Area

A region in the frontal lobe of the brain associated with speech production, language processing, and language comprehension.

Visual Cortex

The visual cortex is the part of the cerebral cortex involved in processing visual information, located in the occipital lobe of the brain.

Premotor Area

A region of the frontal lobe of the brain involved in the planning and execution of movements.