For Andrew's Electronic Instruments, calculate the interest coverage and net profit ratio. Is Andrew's business healthy?
Income Statement for Andrew's
Electronics for End of Year2004 (thousands)

Transcribed Image Text:

Revenues Operaing revenues Sales (minus) Returns 5395 15 380 Total operating revenues Noooperating revenues 50 25 75 455 Interest receipts Stock revenues Tolal nonoperating revenues Total revenues, R Expenses Operating expenses Cost of goods and services sold Labor 200 34 68 20 30 Materials ndirect cost Selling and promotion epreciaion General and administrative Lease payments Total operating expenses 372 Nonoperating expenses Interest payments Totai nonoperating expenses 394 61 30 Total expenses, E Net income before Taxes, R Incomes taxes E Net proft (Loss) for the year 2004 31