Calculate the Times Interest Earned Ratio for Tierre's Ts, Inc

question 19

Multiple Choice

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 percent, 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:

Variance

A statistical measure that represents the dispersion or spread of a set of data points or values around their mean.

Time-Cost Tradeoffs

In project management, the relationship between the time to complete a task and the cost associated with it, illustrating how increasing speed can lead to higher costs.

CPM Networks

CPM Networks, standing for Critical Path Method Networks, are project management tools used to schedule, organize, and coordinate tasks within a project.

Project Crashing

A project management technique used to reduce the project duration without altering the scope of the project, by adding resources to critical path tasks.