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How do I calculate the debt service coverage ratio for 2017 on this company? The following information is available from the balance sheets at the

How do I calculate the debt service coverage ratio for 2017 on this company?

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The following information is available from the balance sheets at the ends of the two most recent years and the income statement for the most recent year of Impact Company: December 31 2017 2016 Accounts payable $3 65,000 $ 50,000 Accrued liabilities 25,000 35,000 Taxes payable 60,000 45,000 Short-term notes payable 0 ?5,000 Bonds payable due within next year 200,000 200,000 Total current liabilities $ 350,000 $ 405,000 Bonds payable 5,; 600,000 $ 800,000 Common stock, $10 par $1,000,000 $1,000,000 Retained earnings 650,000 500,000 ) Total stockholdersr equity $1,650,000 $1,500,000 Total liabilities and stockholders' equity $2,500,000 $2,705,000 2017 Sales revenue $1,600,000 Cost of goods sold 950,000 Gross profit $3 650,000 Selling and administrative expense 300,000 Opelating income '5 350,000 Interest expense 89,000 Income before tax $ 261,000 Income tax expense 111,000 Net income '5 150,000 Other Information: a. Short-term notes payable represents a 12mon1 loan that matured in November 2017. Interest of 12% was paid at maturity. b. One million dollars of serial bonds had been issued ten years earlier. The rst series of $200,000 matured at the end of 201?, with interest of 3% payable annually. c. Cash ow from operations was $185,000 in 201?. The amounts of interest and taxes paid during 2017Ir were $89,000 and $96,000, respecliuely

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