Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Given below are comparative statements of financial position (balance sheets) and an income statement for Namekagon Corporation. Namekagon Corporation Balance Sheets Year 2 December 31
Given below are comparative statements of financial position (balance sheets) and an income statement for Namekagon Corporation. Namekagon Corporation Balance Sheets Year 2 December 31 Cash $ 16,100 Accounts receivable 47,200 Inventory 33,000 Equipment (net) 57,700 Total $ 154,000 Accounts payable 26,500 Dividends payable 8,300 Long-term note payable 14,800 Capital stock, $5 par 73,300 Retained earnings 31,100 Total $ 154,000 January 1 $ 16,100 38,700 36,900 66,800 $ 158,500 29,100 4,400 14,800 73,300 36,900 $ 158,500 Namekagon Corporation Income Statement For the year ended Year 2 Sales $229,300 Cost of goods sold 137,590 Gross profit on sales $ 91,710 Operating expenses 75,918 Operating income $ 15,792 Interest expense 9,600 Net income $ 6,192 Namekagon Corporation's interest coverage ratio for Year 2 is: Multiple Choice 1.55. 1.65. 2.55. 4.81
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started