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Crane Company reported the following on its income statement: Income before income taxes $504000 Income tax expense 153000 Net income $351000 An analysis of the income statement revealed that interest
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Crane Company reported the following on its income statement: Income before income taxes $504000 Income tax expense 153000 Net income $351000 An analysis of the income statement revealed that interest expense was $80000. Crane Company's times interest earned was

User Wesley Chang
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Answer:

Crane Company's times interest earned was 6.30 times.

Step-by-step explanation:

The Times Interest Earned ratio (TIE) shows how well a company covers its interest obligation.

Times Interest Earned ratio (TIE) = Earnings Before Interest and Tax (EBIT) ÷ Interest

= $504,000 ÷ $80,000

= 6.30 times

User Nic Cottrell
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