Peartree Company provides the following income statement:
Interest expense (1000)
Net income before income tax 54,000
Income tax expense 5,000
Net income 49,000
How much is the times-interest-earned ration?

The Times Interest Earned Ratio is:
Earnings before interest and tax divided by Interest Expense

First you have to find your earnings before tax, so add your interest expense to income before tax to get your earnings before interest and tax. The other information you need is given to you.