Sandstorm, Inc signed a 200-day, 5%, $5,000 note on April 1, 2017, and this was the only note payable for the company
Calculate the times-interest-earned ratio of Sandstorm, Inc if its earnings before interest and taxes for the year ending December 31, 2017, is $4,300. (Use a 360-day year.)
What will be an ideal response
EBIT $ 4,300.00
Interest Expense $5,000 x 5% x 200 / 360 = $138.89
Times-interest-earned $4,300 / $138.89 = 30.96 times
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