Determine the firms times interest earned ratio


Response to the following problem:

In the past year, TVG had revenues of $3.05 million, cost of goods sold of $2.55 million, and depreciation expense of $80,000. The firm has a single issue of debt outstanding with book value of $1.05 million on which it pays an interest rate of 10%.

What is the firms times interest earned ratio? (Round your answer to 2 decimal places.)

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Financial Accounting: Determine the firms times interest earned ratio
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