Ferro Inc Signed a 200-Day, 5%, $5,000 Note on April 1

question 27

Essay

Ferro Inc. signed a 200-day, 5%, $5,000 note on April 1, 2014, and that this was the only note payable for the company. Calculate the times-interest-earned ratio of Ferro Inc. if its operating income for the year ending December 31, 2014, amounts to $4,300. Assume a tax rate of 20%.

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Definitions:

Risk Taking

The act of engaging in actions that involve uncertainty or danger with the potential for positive outcomes.

Intellectual Characteristic

A trait or feature relating to the intellect, such as analytical thinking, creativity, or knowledgeability.

Experience of Flow

A state of deep focus and immersion in activities, where individuals lose sense of time and self-awareness.