Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. Interest coverage a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) times Fixed charge coverage $ 223,000 130,000 $ 93,000 44,000 19,100 $ 29,900 10,600 $ 19,300 7,720 $ 11,580 b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) times

Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. Interest coverage a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) times Fixed charge coverage $ 223,000 130,000 $ 93,000 44,000 19,100 $ 29,900 10,600 $ 19,300 7,720 $ 11,580 b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) times

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

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Rousseau Corporation has the following Statement of Income for the year ended May 31, 2020: Sales... $1,675,200 Cost of goods sold.. 887,600 Gross margin... 787,600 Selling & administrative expense.. 241,200 Interest expense. 65,000 Income before income taxes. 481,400 192,500 $288,900 Income taxes.. Net income.... Calculate the interest-coverage ratio for Rousseau Corporation for May31, 2020 (place answer at up to 2 decimal places in the space below). 신
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