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Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Fixed Assets Plant, Property & Equip Other Fixed Assets Total Fixed Assets

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Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Fixed Assets Plant, Property & Equip Other Fixed Assets Total Fixed Assets Total Assets Rainbow Company Balance Sheet (in millions of dollars) $ 84 462 601 15 975 26 ? Rainbow Company 2019 Income Statement (in millions of dollars) Net Sales Cost of Goods Sold Depreciation SGA Expenses R&D Expenses EBIT Interest Expense Taxable Income Taxes Net Income $ 2,709 1,702 80 110 56 78 273 ? ? ? Liabilities and Equity Current Liabilities Accrued wages and taxes Accounts Payable Notes Payable Total Current Liabilities Long-term Debt Other Long-term Liabilities Total Liabilities (Debt) Stockholders' Equity Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities & Equity $ 77 282 364 ? 760 10 ? 564 106 ? Fixed Assets Plant, Property & Equip Other Fixed Assets Total Fixed Assets Total Assets Rainbow Company 2019 Income Statement (in millions of dollars) 975 26 ? Net Sales Cost of Goods Sold Depreciation SGA Expenses R&D Expenses EBIT Interest Expense Taxable Income Taxes Net Income Common Stock Dividends Addition to Retained Earnings ? Further, assume the following: . The firm pays out 60% of its net income as a dividend to its common stockholders. The firm has 130 million shares outstanding. 80% of Net Sales are credit sales. The market price per share is $22.49. $ 2,709 1,702 80 110 56 78 273 ? ? Other Long-term Liabilities Total Liabilities (Debt) Stockholders' Equity Common Stock Retained Earnings Total Shareholders' Equity ? Total Liabilities & Equity 564 106 ? 1 p What is the firm's profit margin? (Round your answer to two decimal places and express in percentage form, e.g. x.xx%.) 1 pts D Question 28 What is the firm's times interest earned (TIE) ratio? (Round your answer to two decimal places.)

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