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Ajax corp's sales last year were $525,000, its operating costs were $362,500, and its interest charges were $12,500. what was the firm's times-interest-earned (tie) ratio?

Sagot :

Sales$510,000

Operating costs$362,500

Operating income (EBIT)$147,500

Interest charges$12,500

TIE= EBIT/interest

EBIT= sales-operating costs

525,000- 362,500= 162,500

162,500/12,500=13

To learn more about times-interest-earned from the given link.

https://brainly.com/question/28165966

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