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Husain, Inc.s income statement and other financial information for the current year is presented below. Hussain, Inc. Income Statement For the year ended December 31
Husain, Inc.s income statement and other financial information for the current year is presented below.
| Hussain, Inc. | ||||
| Income Statement | ||||
| For the year ended December 31 | ||||
| Sales revenue | $ | 174,131 | ||
| Cost of goods sold | 67,360 | |||
| Gross profit | 106,771 | |||
| Selling, general and administrative expenses | 12,135 | |||
| Operating income | 94,636 | |||
| Interest expense | 3,297 | |||
| Income before taxes | 91,339 | |||
| Income tax expense | 3,714 | |||
| Net income | $ | 87,625 | ||
| Balance sheet information: | |||
| Current assets | $ | 251,500 | |
| Noncurrent assets | 503,000 | ||
| Current liabilities | 53,000 | ||
| Long-term debt | 106,000 | ||
Required:
- Perform vertical analysis of the income statement.
- Calculate the debt-to-assets ratio.
- Calculate the times interest earned ratio.
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Vector Mechanics for Engineers Statics and Dynamics
Authors: Ferdinand Beer, E. Russell Johnston Jr., David Mazurek, Phillip Cornwell, Brian Self
11th edition
73398241, 978-0073398242
