FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes Income after taxes X $231,000 116,000 115,000 29,700 X 85,300 15,900 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned 69,400 24,290 $45,110 b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage
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Transcribed Image Text:The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes Income after taxes X $231,000 116,000 115,000 29,700 X 85,300 15,900 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned 69,400 24,290 $45,110 b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage
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