The following presents the balance sheet for Firm K, along with information from the income...
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Accounting
The following presents the balance sheet for Firm K, along with information from the income statement. If the interest rate charged on Firm K's LT debt is 5%, and 0% for short-term debt, what is the times-interest-earned ratio?
Total Assets: 2,000 Income Statement Information
Current Assets: 600 Revenue: 3,500
Cash: 100 EBIT: 800
Receivables: 200 Net Income: 200
Inventory: 300
Noncurrent Assets: 1,400
Net PP&E: 1,100
Other NCA: 300
Total Liabilities: 1,500
Current Liabilities: 700
Current Debt: 250
Payables: 300
Accruals: 150
Noncurrent Liabilities: 800
Long Term Debt: 800
Total Equity: 500
Common Stock 400
Retained Earnings 100
A.10.0
B15.0
C.20.0
D.5.0
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