Wileys wilderness pays 6 percent interest on its outstanding debt, which equals $200,000. the companys sales are $540,000, its tax rate is 40 percent, and its net profit margin is 4 percent.
Required:
Question 1: What is Wileys TIE?
Question 2: If Wileys wants to maintain a TIE equal to 6.0, what must its sales equal?
Note: Please describe comprehensively and provide step by step solution.