Homework Answers
a
Interest Coverage =EBIT/Interest=$51500/$6900=7.46 times
b
fixed Charges Coverage =Income before fixed charges and taxes/Fixed charges
=(51500+15000)/(6900+15000)=3.04 times
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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...
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 $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%) 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 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...
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...
The total assets for this company equal $182,000. Set up the equation for the Du Pont...
The total assets for this company equal $182,000. 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.)
d. Compute the total asset turnover ratio.
(Round your answer to 2 decimal places.)
e. Compute the return on assets (investment).
(Do not round intermediate calculations. Input your answer
as a percent rounded to 2 decimal places.)
Using the income statement for Times...
The Simmons Corporation's income statement is given below SIMMONS CORPORATION Sales $233,000 137,000 Cost of goods...
The Simmons Corporation's income statement is given below SIMMONS CORPORATION Sales $233,000 137,000 Cost of goods sold Gross profit Fixed charges (other than interest) 96,000 31,800 64,200 19,800 Income before interest and taxes Interest 44,400 15,540 Income before taxes Taxes $28,860 Income after taxes a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.)...
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test...
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test Ratio Days in Receivable Days in Inventory Operating Profit Margin Total Asset Tumover Fixed-asset turnover Debt Ratio Times Interest Earned Return on Equity Income Statement Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant and Equipment Accumulated Depreciation Net Fixed Assets Total Assets $200,000 $60,000 $100,000 $20,000 $380,000 $802,000 -$132,000 $670,000 $1,050,000 Sales (all credit) Cost of Goods Sold...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for...
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions) 2004 2006 Cash $ 1,256.73 $ 1,523.36 Accounts receivable 1,097.16 735.30 Current assets 3,313.56 3,268.33 Current liabilities 3,285.39 6,057.95 Long-term debt 17,150.81 3,531.63 Short-term debt 1,033.96 4,568.83 Total liabilities 22,898.42 25,503.17 Interest expense 1,516.90 1,288.29 Capital expenditures 1,545.48 211.50 Equity 4,587.67 (7,152.90) Cash from operations 19.89 335.98 Earnings before interest and taxes 1,659.84 1,907.84 (a)...
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 $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%) 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 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...
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...
The total assets for this company equal $182,000. 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.)
d. Compute the total asset turnover ratio.
(Round your answer to 2 decimal places.)
e. Compute the return on assets (investment).
(Do not round intermediate calculations. Input your answer
as a percent rounded to 2 decimal places.)
Using the income statement for Times...
The Simmons Corporation's income statement is given below SIMMONS CORPORATION Sales $233,000 137,000 Cost of goods sold Gross profit Fixed charges (other than interest) 96,000 31,800 64,200 19,800 Income before interest and taxes Interest 44,400 15,540 Income before taxes Taxes $28,860 Income after taxes a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.)...
Problem # 1 (50 points) Given the Income Statement and Balance Sheet Compute: Current Ratio Acid-Test Ratio Days in Receivable Days in Inventory Operating Profit Margin Total Asset Tumover Fixed-asset turnover Debt Ratio Times Interest Earned Return on Equity Income Statement Balance Sheet Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets Gross Plant and Equipment Accumulated Depreciation Net Fixed Assets Total Assets $200,000 $60,000 $100,000 $20,000 $380,000 $802,000 -$132,000 $670,000 $1,050,000 Sales (all credit) Cost of Goods Sold...
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