Question
I am trying to find fixed charge coverage. I know that the ratio is tax expense, equity earnings, and noncontrolling interest + Interest portion of
I am trying to find fixed charge coverage. I know that the ratio is tax expense, equity earnings, and noncontrolling interest + Interest portion of rentals / interest expense, including capitalized interest + interest portion of rentals. I am just not getting the right answer when I am doing this. I just need a better explanation or someone show me because I have a couple problems like this and need to understand it more.
Here is the information off of the income statement. Where am I going wrong
Operating Revenues:
Passenger 11,489
Freight 125
Other 490
Total operating revenues 12,104
operating expenses
salaries and wages 3,704
fuel and oil 3,620
maintenance repairs 751
aircraft rentals 180
landing fees and other rentals 807
depreciation 628
total operating 1,426
operating income 11,116
other expenses (income)
interest expense 167
capitalized interest (18)
interest income (12)
other gains and losses 106
total before income taxes 243
income before income taxes 745
provision for income taxes 286
net income 459
net income per share basic .62
net income per share diluted .61
cash dividends declared per common share .0180
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