Question: A creditor has the following data from the income statement of freds and has request you to compute and explain the Times Interest Earned ratio(TIE)

A creditor has the following data from the income statement of freds and has request you to compute and explain the Times Interest Earned ratio(TIE) for him. I know the answer is 8.03. MY QUESTION IS: WHERE DOES THE 500 COMES FROM ??? Thank you for your help and explaination!

Net operating Income $2.570 Interest Expense 320 Net income before taxes 2.250 Income tax (409%) Net income $1.750

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