22. Using the income statement for Times Mirror and Glass Co., compute the following ratios:

a. The interest coverage.

b. The fixed charge coverage.

The total assets for this company equal $80,000. Set up the equation for the Du Pont system of ratio analysis, and compute

c, d, and e.

c. Profit margin.

d. Total asset turnover.

e. Return on assets (investment).

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TIMES MIRROR AND GLASS CO. Sales.... $126,000 Less: Cost of goods sold. 93,000 Gross profit.... 33,000 11,000 4,000 Less: Selling and administrative expense Less: Lease expense. Operating profit* Less: Interest expense. Earnings before taxes Less: Taxes (30%) Earnings after taxes *Equals income before interest and taxes. $ 18,000 3,000 $ 15,000 4,500 $ 10,500