Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 470,015 Income before taxes $3,670,035 Income taxes 1,461,214 Net income $2,208,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place. times
Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 470,015 Income before taxes $3,670,035 Income taxes 1,461,214 Net income $2,208,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place. times
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Calculating the Times-Interest-Earned Ratio
Beech Company provided the following income statement for last year:
Sales | $24,350,735 |
Cost of goods sold | 15,300,000 |
Gross margin | $9,050,735 |
Operating expenses | 4,910,685 |
Operating income | $4,140,050 |
Interest expense | 470,015 |
Income before taxes | $3,670,035 |
Income taxes | 1,461,214 |
Net income | $2,208,821 |
Required:
Calculate the times-interest-earned ratio. Round the answer to one decimal place.
times
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