Question

which of the follwong dates is not important for calculations of time ratio?​

Answer 1

Explanation:

The times interest earned ratio is calculated as follows: the corporation's income before interest expense and income tax expense divided by its interest expense.

Answer 2

The answer is value of total assets:

Explanation:

• The total value of your assets is unimportant.
• Interest expense divided by earnings before interest and taxes.
• Divide income before interest and income taxes by interest expense to get the times interest earned ratio.
• On the income statement, both of these amounts can be found.
• For solvency analysis, interest expense and income taxes are frequently stated separately from normal operating expenses.
• The TIE ratio is a measure of a company's capacity to meet debt commitments based on current income.