Question

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ON HD Webcam HD Video Comercing hool of Mana x Essentials of Accounting, Finance x Week 4: Homework newconnect.mheducation.com/flow/connect.html Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate Sales are $1.49 million, cost of goods sold is $595,000, depreciation expense is $149.000, other operating expenses is $299,000, addition to retained earnings is $114,400, dividends per share is $1. tax rate is 40 percent, and number of shares of common stock outstanding is 89.000. LaTonya's Flop Shops has no preferred stock outstanding. Use the above information to calculate the times interest earned ratio for LaTonya's Flop Shops, Inc. (Round your answer to 2 decimal places.) ® Answer is complete but not entirely correct. 2.76 times Interest earned

Answer 1

for Latonya's 5) Interest earned Ratio (times Flops Inc is calculated belowin 1490000 595000 895000 Sale Lless: cast of goods sold Gross profit fless operating income scpenses Depreciation other operating expenses Total operating expenses operating Income 149.000 299000 4.48000 1447000 Interest earned Ratio (I med operating Incant A = operating Income + Depreciation - Interest expenses $ 447000 + 149 000 Interest expens seg Interest expenses is ccelculet ed Below After Net Income tax) = Retained Earning at Dividend - $ 114,400 +(89000 X $ 1) - = $203, 400 Net Income before tax) = 8203,400 tax rate 40% 0.60 =$:339000

Interest expenses - operating Income Net profit (befae & tax) $447000 - 3339000 = $ 108000 - Interest eamed Ratio (Times - 3.447000 +3349000 $ 108000 - 5.52 times) 6 Goodman Bees' net working capital is calculated belowi. current Assets cash and maketable securities 560000 Account Receivable 2000000 Inventosy 2500 000 Total current Assets 5069000 Less current labilities Accrued wages & taxes 6, 10,oooh Account payable 9,10,000 Notes pagable 7,10000 Total current liabilities 2230000 Net working capital 2830000 we Assunoe that note payable is payable less than 1 year solt is current liability casello's total stod holders equity is as follows: 435,5oo 550500 986000 current Assets Fixed Assets Todassets less liabilities and long term loon current liabilities lang term debt Total liabilities and long term loan 1. To tas stockholders equity 416900 (315100 732000 25 4000