The Simmons Corporation's income statement is given below.
a. What is the times interest earned ratio?
b. What would be the fixed charge coverage ratio?

SIMMONS CORPORATION
Sales..........................................................$200,000
Cost of goods sold .... .. .. .. .. . ....... . .. .. . .116,000
Gross profit. ........................ . .......................84,000
Fixed charges (other than interest)................24,000
Income before interest and taxes...................60,000
Interest ............................... .. .. . ...................12,000
Income before taxes .... . .. .. .. . ........ .. .. . ....48,000
Taxes ................. ............................................24,000
Income after taxes........................................$ 24,000.