Question

How to get an interest coverage ratio of: -48.90

with the formula of: Earnings Before Interest & Taxes /  Interest Expense

  

How to get a gross margin ratio of: -39.20%

With the formula of: Gross Profit/  Sales

Income Statement 9322.9 9060.5 262.4 $12615.2 822.7 11522.9 2472.1 2202.4 $1371.2 560.7 79.6 28.7 27.4 66.0 93.5 160.4 48.0 1.8 32.3 272.7 Total revenue Sales of goods and services All other revenues Cost of sales (direct expenses Wages and benefits Purchases, materials and sub-contracts Opening inventory Closing inventory ting expenses (indirect expenses) Labour and commissions Amortization and depletion Repairs and maintenance Utilities and telephone/telecommunication Rent Interest and bank charges Professional and business fees Advertising and promotion Delivery, shipping and warehouse expenses Insurance Other expenses Total expen 3986.4 4663 Balance Sheet $6533.1 4874.1 1364.1 2179.7 1331.4 837.6 821.5 $4916.7 211.2 481.5 2729.8 1705.5 $1616.4 Total assets Total current assets Accounts receivable Closing inventory Other current assets Net tangible and intangible assets All other assets and adjustments tal liabilities Total current liabilities Current bank loans Other current liabilities Long term liabilities Total equit

please zoom if needed to be.. attached is the statements with the answers for coverage ratio and gross margin but please show the formula used to get those answers. Thanks in advance.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

EBIT = Total revenue-cost of sales- operating expenses + Interest

= 9322.9-12615.2 -1371.2+ 93.5

=-4570

Interest coverage = EBIT/ Interest

=-4570/ 93.5

=-48.90

Gross margin = Gross profit/ revenue

= (revenue – cost of sales)/ Revenue

= (9060.5-12615.2)/9060.5

=-39.2%

Add a comment
Know the answer?
Add Answer to:
How to get an interest coverage ratio of: -48.90 with the formula of: Earnings Before Interest...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • When a firm has both interest expenses and lease payments, its times interest earned ratio Select...

    When a firm has both interest expenses and lease payments, its times interest earned ratio Select one A. Will be smaller than its fixed charge coverage B. Will be greater than its fixed charge coverage cWill be equal to its fixed charge coverage D. Wis not be able to be determined Southpark Ind bad income before interest and taxes of $30,000, paid $4.000 in interest expense, and had $5,000 in operating lease expenses. What is the firm's fixed charge coverage...

  • Calculate the current ratio, quick ratio, long-term debt/total assets, times interest earned, and fixed cost coverage...

    Calculate the current ratio, quick ratio, long-term debt/total assets, times interest earned, and fixed cost coverage using the picture below. X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS...

  • Requirements: A. Gross Margin Percentage B. Earnings Per Share C. Price-earnings Ratio D. Dividend Payout Ratio...

    Requirements: A. Gross Margin Percentage B. Earnings Per Share C. Price-earnings Ratio D. Dividend Payout Ratio E. Dividend Yield Ratio F. Return on Total Assets G. Return on Equity H. Book Value per share I. Working Capital J. Current Ratio K. Acid-test Ratio L. Accounts receivables turnover M. Average Collection Period N. Inventory turnover O. Average Sale Period P. Times-Interest Earned Q. Debt-to-Equity Ratio Please Show A step-by-step Solutions; (Only for Genius) Thank you soooooo much. Hykas Corporation's most recent...

  • Q-2 FINANCIAL RATIO FORMULAS Match each of the following financial ratios with its formula: Accounts Payable...

    Q-2 FINANCIAL RATIO FORMULAS Match each of the following financial ratios with its formula: Accounts Payable Tunover Ratio Fixed Asset Turnover Ratio Asset Turnover Ratio Cash Coverage Ratio Cash Ratio Current Ratio Average Age of Receivables Average Days Supply in Inventory Receivable Turnover Ratio Debt-to-Equity Ratio Earnings per Share (EPS) Financial Leverage Percentage Times Interest Earned Ratio Inventory Turnover Ratico Price/ Earnings (P/E) Ratio Profit Margin Quality of Income Quick Ratio Return on Equity (ROE) Return on Assets (ROA) A....

  • how to get the numbers [2] Financial ratios (58 points) Find the missing values on the...

    how to get the numbers [2] Financial ratios (58 points) Find the missing values on the balance sheet and the income statement of Pensacola Railroads (in S millions). Start with the balance sheet, and then continue with the income statement. You can use the following ratios: NOTE: USE AVERAGE RECEIVABLES AND INVENTORY Debt Ratio loterest Coverage Ratio CurreatRatio Quick Ratio Cash Ratio 0.4 1.4 0.2 Average Collection Period (average receivables) Tax rate 73 das 40% Marks: 28 for balance sheet,...

  • 1) the times interest earned ratio 2) the debt to equity ratio 3) the gross margin...

    1) the times interest earned ratio 2) the debt to equity ratio 3) the gross margin percentage 4) the return on total assets (total assets at the beginning of last hear were 13,070,000) 5) the return on equity(stockholders equity at the beginning of last year totaled 7,990,250) no change in common stock over two years 6) ks the companys financial leverage positive ir negative? $ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...

  • 2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabiliti...

    2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days Accounts Receivable 1 Low ST liquidity risk high Low ST liquidity risk 0.4 Low ST liquidity risk Current Assets/ Current Liabilities (Cash+ShortTermInvestments+AccountsReceivable Current Liabilities Operating Cash Flow/0.5(Current Liabilities-2Year) 365/Accounts Receivable Turnover Ratio Accounts Receivable Turnover-Sales 0.5(Accounts Receivable-2Year) 565 Inventory lurnover Ratio Inventory Turnover Ratio Costs of Goods Sold'0.5(Inventory-2Year) 365/Accounts Payable Tumover Ratio Accounts Payable Turnover-Purchase 0.5(Accounts Payable-2Year) Purchase-Cost of Goods Sold+Ending Inventory-Beginning Inventory Days...

  • 5. Times interest earned ratio. (Round your answer to 2 decimal places.) Times interest earned ratio...

    5. Times interest earned ratio. (Round your answer to 2 decimal places.) Times interest earned ratio 6. Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.) Average collection period days 7. Average sale period. (Use 365 days in a year. Round your intermediate and final answer to 1 decimal place.) Average sale period days Operating cycle. (Round your intermediate calculations and final answers to 1 decimal place.) Operating cycle The financial statements for...

  • Part 1: Ratio Analysis calculate the following ratios Part 2: Perform a vertical analysis of statement...

    Part 1: Ratio Analysis calculate the following ratios Part 2: Perform a vertical analysis of statement of financial position & Income statement Part 3: Perform a Horizontal Analysis of statement of Financial Position for 2015 and 2014 & Income statement for 2015 Instructions: 1. On pages three and four, you will find condensed statement of financial position and income statement data for Waterloo Corporation. 2. Use the same information to answer all the three parts. 3. Part 1: a. In...

  • 2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days...

    2013 2014 2015 Formula Current Ratio Quick Ratio Operating Cash Flow to Average Current Liabilities Days Accounts Receivable 1 Low ST liquidity risk high Low ST liquidity risk 0.4 Low ST liquidity risk Current Assets/ Current Liabilities (Cash+ShortTermInvestments+AccountsReceivable Current Liabilities Operating Cash Flow/0.5(Current Liabilities-2Year) 365/Accounts Receivable Turnover Ratio Accounts Receivable Turnover-Sales 0.5(Accounts Receivable-2Year) 565 Inventory lurnover Ratio Inventory Turnover Ratio Costs of Goods Sold'0.5(Inventory-2Year) 365/Accounts Payable Tumover Ratio Accounts Payable Turnover-Purchase 0.5(Accounts Payable-2Year) Purchase-Cost of Goods Sold+Ending Inventory-Beginning Inventory Days...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT