The morris corporation has $350,000 of debt outstanding, and it pays an interest

TIE 2.47

Explanation:

Our first step will be calculate the interest expense

350,000 debt outstanding * 12% rate = 42,000

Next, we need the EBIT which means Earnings Before Interest and Taxes.

Using the net profit margin of 3% we can get the net income

This means 3% of sales become net income

We are going to apply this to Morris sales to get the net income

Now this include the interest and taxes, we need to get the Earning before those two concepts so:

Now we got everything needed for the TIE

129,500/52,500 = 2.47

c is correct thank you

Step-by-step explanation:

got it correct on edg.