Pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

-Refer to the data for Pettijohn Inc.What is the firm's TIE?
A) 1.94
B) 2.15
C) 2.39
D) 2.66
E) 2.93

Question

Pettijohn Inc.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
 
-Refer to the data for Pettijohn Inc.What is the firm's TIE?
A) 1.94 
B) 2.15 
C) 2.39 
D) 2.66 
E) 2.93

Quizplus · Accepted Answer

TIE = EBIT/Interest charges = 2.66

Pettijohn Inc. the Balance Sheet and Income Statement Shown Below Are for Are