Answer :
The times interest earned ratio is 2.51
What is the times interest earned ratio about?
The times interest earned ratio measures the number of times the earnings before interest and taxes of $56,850 can be used to pay the interest on debt annually.
times interest earned ratio=earnings before interest and taxes/interest expense
earnings before interest and taxes=$56,850
net income=earnings before tax*(1-tax rate)
net income=$23,954
tax rate=30%
$23,954=earnings before tax*(1-30%)
$23,954=earnings before tax*0.70
earnings before tax=$23,954/0.70
earnings before tax=$34,220
earnings before tax=earnings before interest and tax-interest
$34,220=$56,850-interest
interest=$56,850-$34,220
interest=$22,630
times interest earned ratio=$56,850/$22,630
times interest earned ratio=2.51
Find out more about times interest earned ratio on:https://brainly.com/question/14513840#SPJ1
