Income Statement

Year Ended July 31, 2018

Net Sales Revenue

$28,000

Cost of Goods Sold

10,800

Gross Profit

17,200

Operating Expenses:

Selling Expenses

$690

Administrative Expenses

1,550

Total Operating Expenses

2,240

Operating Income

14,960

Other Income and (Expenses):

Interest Expense

?

Total Other Income and (Expenses)

?

Net Income before Income Tax Expense

?

Income Tax Expense

2,810

Net Income

$ ?

The income statement for

UtahUtah

Communications follows. Assume

UtahUtah

Communications signed a 3-month,

9 %9%,

$ 60 comma 000$60,000

note on

JuneJune

1,

20182018,

and that this was the only note payable for the company.

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Requirements

1.	Fill in the missing information for UtahUtah's year ended JulyJuly 3131, 20182018, income statement. Round to the nearest dollar.
2.	Compute the times-interest-earned ratio for the company. Round to two decimals.

Requirement 1. Fill in the missing information for

UtahUtah's

year ended

JulyJuly

3131,

20182018,

income statement. Round to the nearest dollar. (Use a 12-month year for interest computations. Use a minus sign or parentheses to enter other expenses.)

		Utah Communications
		Income Statement
		Year Ended July 31, 2018
Net Sales Revenue				$28,000
Cost of Goods Sold				(10,800)
Gross Profit				17,200
Operating Expenses:
	Selling Expenses		$690
	Administrative Expenses		1,550
	Total Operating Expenses			(2,240)
Operating Income				14,960
Other Income and (Expenses):
	Interest Expense
	Total Other Income and (Expenses)
Net Income before Income Tax Expense
Income Tax Expense				(2,810)
Net Income

Requirement 2. Compute the times-interest-earned ratio for the company. Round to two decimals.

Select the formula and enter the amounts to compute the times-interest-earned ratio. (Round your answer to two decimal places, X.XX.)

Times-interest-earned ratio

=

=