Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Cost of goods sold Gross profit Selling, general and administrative expenses Operating income Interest expense Income before taxes Income tax expense Net income $234, 131 79,360 154,771 15, 135 139,636 5,097 134,539 4,914 $129,625 Balance sheet information: Current assets Noncurrent assets Current liabilities Long-term debt $257,500 515,000 65,000 130,000 Required: a. Perform vertical analysis of the income statement. b. Calculate the debt-to-assets ratio. c. Calculate the times interest earned ratio. Complete this question by entering your answers in the tabs below. Required A Required B Required C Perform vertical analysis of the income statement. (Round your answers to the nearest whole percent.) HUSSAIN, INC. Income Statement For the year ended December 31 Amount Percent (%) Sales revenue $ 234,131 Cost of goods sold 79,360 Gross profit 154,771 Selling, general, and administrative expenses 15,135 Operating income 139,636 Interest expense 5,097 Income before taxes 134,539 Income tax expense 4,914 Net income $ 129,625 Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the debt-to-assets ratio. (Round your answer to 2 decimal places.) Debt-to-assets Ratio Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate the times interest earned ratio. (Round your answer to 2 decimal places.) Interest Earned Ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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