Ajax corp's sales last year were $400,000, its operating costs were $362,500, and its interest charges were $12,500. what was the firm's times-interest-earned (tie) ratio?

a. 3.00
b. 3.66
c. 2.46
d. 2.61
e. 3.48

times-interest-earned ratio will be 3

So option (a) will be correct answer

Explanation:

We have given total sales = $400000

Operating expenses = $362500

And interest charges = $12500

So earning before interest and taxes = sales - operating cost = $400000 - $362500 = $37500

We have to find the times-interest-earned ratio

So times-interest-earned ratio is given by

times-interest-earned ratio =

So option (A) will be correct option

fractionally backed paper money

fiat money

paper money

metallic money

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.