Compute the following earnings coverage ratios:

Earnings to fixed charges.

Cash flow to fixed charges.

Earnings coverage of preferred dividends.

Tolito Treats, Inc. Consolidated Income Statement ($ thousands) Year Ending December 31, 2015

Sales		$20000.00
Undistributed Income of Less Than 50%-Owned Affiliates		$300.00
Total Revenue		$20,300.00
Cost of Goods Sold	$9,000.00
Selling and Administrative Expenses	$2,000.00
Depreciation	$600.00
Rental Expense	$500.00
Share of Minority Interest in Consolidated Income	$200.00
Interest Expense	$400.00	-$12,700.00
Income Before Taxes		$7,600.00
Income Taxes
Current	$900.00
Deferred	$400.00	-$1,300.00
Net Income		$6,300.00
Less Dividends
Common Stock	$300.00
Preferred Stock	$400.00	-$700.00
Earnings Retained for the Year		$5,600.00

Additional Information:

The following changes occurred in current assets and current liabilities for 2015:

Current Accounts	Increase (Decrease)	Current Accounts	Increase (Decrease)
Accounts Receivable	$900.00	Notes Payable to Bank	-$200.00
Inventories	-$800.00	Accounts Payable	$700.00
Dividend Payable	-$100.00

The effective tax rate is 40%.

Shares of minority interests in consolidated income do not have fixed charges.

Interest expenses include:

Interest Incurred (Except Items Below)	$600.00
Amortization of Bond Premium	-$300.00
Interest on Capitalized Leases	$140.00
Interest Incurred	$440.00
Less Interest Capitalized	-$40.00
Interest Expense	$400.00

Amortization of previously capitalized interest (included in depreciation) is $60.

Interest implicit in operating lease rental payment (included in rental expense) is $120.