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HELP PLEASEEE!! Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales $277,000 165,000 Cost
HELP PLEASEEE!!
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales $277,000 165,000 Cost of goods sold Gross profit $112,000 Selling and administrative expense 43,200 Lease expense 13,500 Operating profit* $ 55,300 Interest expense 10,100 Earnings before taxes Taxes (30%) $ 45,200 18,080 Earnings after taxes $ 27,120 *Equals income before interest and taxes. a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.) Interest coverage 5.47 times b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) Fixed charge coverage 2.91 times The total assets for this company equal $211,000. Set up the equation for the Du Pont system of ratio analysis. c. Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.) Profit margin % d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.) Total asset turnover times e. Compute the return on assets (investment). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on assets % Step by Step Solution
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