Homework Answers
a) Times interest earned = EBIT/Interest = 64200/19800 = 3.24 Times
b) Fixed charge coverage ratio = (64200+31800)/51600 = 1.86 Times
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The Simmons Corporation's income statement is given below SIMMONS CORPORATION Sales $233,000 137,000 Cost of goods...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS COMPANY 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. $ 235,000 121,000 $114,000 47,500 15,000 $51,500e 6,900 $44,600 17,840 $26,760 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b. Compute the...
g 3. Given the balance sheet and income state for Simmons Maintenaethet Simmons & Professional Studies...
g 3. Given the balance sheet and income state for Simmons Maintenaethet Simmons & Professional Studies ratios that are also shown for the industry average. For each ratio,indica is better or worse than the industry average. For inventory turn cost of goods sold. Company, compute the use sales rather than SIMMONS MAINTENANCE COMPANY Assets Cash Acets. Receivable Inventory Current Assets Net Fixed Assets Liabilities S 15,000 Accounts Payable S 21,000 22,000 Notes Payable 20,000 30,000 Accrued Expenses 67,000 Current Liabilities...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
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 $235,000 121,000 $114,000 47,500 15,000 51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
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 $ 220,000 131,000 $ 89,000 44,500 14,200 $ 30,300 10,400 $ 19,900 7,960 $ 11,940 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
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 $235,000 121,000 $114,000 47,500 15,000 $51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interes coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY 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. $266,000 161,000 $105,000 46,400 13,300 $ 45,300 7,300 $ 38,000 15, 200 $ 22,800 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR...
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%) $221,000 113,000 $108,000 43,700 11,900 52,400 7,100 45,300 18,120 $27,180 Earnings after taxes Equals income befor re interest and taxes a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (308) Earnings after taxes *Equals income before interest and taxes $291,000 172,000 $119,000 45,800 13,300 $ 59,900 8,300 $ 51,600 20,640 $ 30,960 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Answer is complete and...
Myers, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods...
Myers, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit Expenses (including $10,000 interest and $23,000 income taxes) Net income $430,000 200,000 230,000 96,000 $ 134,000 Additional information: 1. 2. 3. Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020. The market price of Myers stock was $11.43 in 2020. Cash dividends of $28,140 were paid, $7,000 of which were to preferred...
11) Milton, Inc. provides the following income statement for 2019: Net Sales Cost of Goods Sold...
11) Milton, Inc. provides the following income statement for 2019: Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Loss on Sale of Capital Assets Interest Expense Total Other Income and (Expenses) Income Before Income Taxes Income Tax Expense Net Income $240,000 110,000 $130,000 operason 45,000 12,000 57,000 $73,000 (25,000) (1000 (26,000) $47,000 5000 $42,000 Calculate the times-interest-earned ratio. (Round your answer to two decimal places.)...
Using the income statement for Times Mirror and Glass Co., compute the following ratios TIMES MIRROR AND GLASS COMPANY 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. $ 235,000 121,000 $114,000 47,500 15,000 $51,500e 6,900 $44,600 17,840 $26,760 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b. Compute the...
g 3. Given the balance sheet and income state for Simmons Maintenaethet Simmons & Professional Studies ratios that are also shown for the industry average. For each ratio,indica is better or worse than the industry average. For inventory turn cost of goods sold. Company, compute the use sales rather than SIMMONS MAINTENANCE COMPANY Assets Cash Acets. Receivable Inventory Current Assets Net Fixed Assets Liabilities S 15,000 Accounts Payable S 21,000 22,000 Notes Payable 20,000 30,000 Accrued Expenses 67,000 Current Liabilities...
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 $235,000 121,000 $114,000 47,500 15,000 51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
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 $ 220,000 131,000 $ 89,000 44,500 14,200 $ 30,300 10,400 $ 19,900 7,960 $ 11,940 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest...
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 $235,000 121,000 $114,000 47,500 15,000 $51,500 6,900 $44,600 17,840 $ 26,760 a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interes coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY 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. $266,000 161,000 $105,000 46,400 13,300 $ 45,300 7,300 $ 38,000 15, 200 $ 22,800 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage 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%) $221,000 113,000 $108,000 43,700 11,900 52,400 7,100 45,300 18,120 $27,180 Earnings after taxes Equals income befor re interest and taxes a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage times b.Compute the...
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (308) Earnings after taxes *Equals income before interest and taxes $291,000 172,000 $119,000 45,800 13,300 $ 59,900 8,300 $ 51,600 20,640 $ 30,960 a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Answer is complete and...
Myers, Inc. Income Statement For the Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross profit Expenses (including $10,000 interest and $23,000 income taxes) Net income $430,000 200,000 230,000 96,000 $ 134,000 Additional information: 1. 2. 3. Common stock outstanding January 1, 2020, was 16,000 shares, and 24,000 shares were outstanding at December 31, 2020. The market price of Myers stock was $11.43 in 2020. Cash dividends of $28,140 were paid, $7,000 of which were to preferred...
11) Milton, Inc. provides the following income statement for 2019: Net Sales Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Loss on Sale of Capital Assets Interest Expense Total Other Income and (Expenses) Income Before Income Taxes Income Tax Expense Net Income $240,000 110,000 $130,000 operason 45,000 12,000 57,000 $73,000 (25,000) (1000 (26,000) $47,000 5000 $42,000 Calculate the times-interest-earned ratio. (Round your answer to two decimal places.)...
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