(Solution) 16) Using The Income Statement For Times Mirror And Glass Co., Compute The Following Ratios: TIMES MIRROR AND GLASS Co. | Snapessays.com


(Solution) 16) Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co.


16)Using the income statement for Times Mirror and Glass Co., compute the following ratios:    TIMES MIRROR AND GLASS Co.Income Statement   Sales $ 270,000     Cost of goods sold   130,000        Gross profit $ 140,000     Selling and administrative expense   43,200     Lease expense   11,700        Operating profit* $ 85,100     Interest expense   9,300        Earnings before taxes $ 75,800     Taxes (30%)   30,320        Earnings after taxes $ 45,480        *Equals income before interest and taxes.         a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.)      Interest coverage  times    b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.)      Fixed charge coverage  times     The total assets for this company equal $205,000. Set up the equation for the Du Pont system of ratio analysis.    c. Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.)     Profit margin  %       d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.)     Total asset turnover  times    e. Compute the return on assets (investment). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)      Return on assets %  

 


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This question was answered on: May 23, 2022

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