The Lancaster Corporation's income statement is given below.SalesCost of goods soldGross profitFixed charges (other than interest)Income before interest and taxesInterestIncome before taxesTaxes (35%)Income after taxesLANCASTER CORPORATIONa. What is the times-interest-earned ratio?Note: Round your answer to 2 decimal places.Times interest earnedFixed charge coveragetimesb. What would be the fixed-charge-coverage ratio?Note: Round your answer to 2 decimal places.times$ 223,000155,000$ 68,00033,100$ 34,90013,400$ 21,5007,525$ 13,975

Ratio analysis refers to the method used for analyzing the position of liquidity, solvency,…

Answered: The Lancaster Corporation's income…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Presented below are certain account balances of Splish Products Co. Rent revenue $6,810 Sales discounts $8,080 Interest expense 13,280 Selling expenses 99,900 Beginning retained earnings 114,710 Sales revenue 404,200 Ending retained earnings 134,920 Income tax expense 26,028 Dividend revenue 71,170 Cost of goods sold 200,378 Sales returns and allowances 12,960 Administrative expenses 79,380 Allocation to noncontrolling interest 20,680 From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Splish has allocation to noncontrolling interest of $20,680. (a) Total net revenue $enter total net revenue in dollars (b) Net income $enter net income in dollars (c) Income attributable to controlling stockholders $enter income attributable to controlling stockholders in dollars
A firm's income statement included the following data. The firm's average tax rate was 30%. (Round each step to the nearest dollar.) Cost of goods sold Income taxes paid Administrative expenses Interest expense Depreciation a. What was the firm's net income? Net income b. What must have been the firm's revenues? Revenues c. What was EBIT? EBIT tA $ 7,600.00 11,271.00 1,900.00 2,600.00 3,200.00 LA
Consider the following given information below: Total Income P1,321,000 Total Distribution Cost 268,900 Total Administrative Cost 250,200 Other Expenses 8,000 Interest Expense 9,000 Total Expenses 536,100 Income Tax Expense 235,500 What is the amount of income before tax to be reflected in the income statement?
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. a.Compute the interest Interest coverage ge ratio. (Round yo times $ 223,000 130,000 $ 93,000 44,000 19,100 $ 29,900 10,600 times $ 19,300 7,720 $ 11,580 answer to 2 decimal places.) b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) Fixed charge coverage
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Refer to the following selected financial information from Gomez Electronics. Compute the company's profit margin for Year 2. Net sales Cost of goods sold Interest expense Net income before tax Net income after tax Total assets Total liabilities Total equity Year 2 Year 1 $485,000 $427,550 277,600 251,420 11,000 12,000 68,550 53,980 47,350 41, 200 319,700 295,800 174,900 144, 800 168, 600 127, 200
A company reports the following:Income before income tax $4,000,000Interest expense 400,000Determine the times interest earned ratio. Round to one decimal place.
The Lancaster Corporation’s income statement is given below. LANCASTER CORPORATION Sales $ 265,000 Cost of goods sold 137,000 Gross profit $ 128,000 Fixed charges (other than interest) 25,100 Income before interest and taxes $ 102,900 Interest 19,100 Income before taxes $ 83,800 Taxes (35%) 29,330 Income after taxes $ 54,470 a. What is the times-interest-earned ratio? (Round your answer to 2 decimal places.)
19) Montana Co. had the following account balances: Sales reveäue Cost of goods sold Salaries and wages expense Depreciation expense Dividend revenue Utilities expense Rent revenue Interest expense Sales returns and allowances Advertising expense S 180,000 90,000 15,000 30,000 6,000 12,000 30,000 18,000 16,500 19,500 What would Montana report as total expense in a single-step income statement? 20) Gross billings for merchandise sold by Gomez Company to its customers last year amounted to $12.720,000; sales returns and allowances were $370,000, sales discounts were S175.000, and freight-out was $140,000. Net sales last year for Gomez Company were?
Webby Corporation reported the following amounts on its income statement: service revenues, S32,500; utilities expense, $300; net income, $1,600; and income tax expense, $900. If the only other amount reported on the income statement was for selling expenses, what amount would it be? a. $2,200 c. $30,000 b. $29,700 d. $30,900

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