MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31, 20XY Sales (all on credit) Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Net income before taxes Taxes (50%) Net income $700,000 400 000 300,000 100.000 200,000 40.000 160.000 80.000 80.000 Based on the above income statement, compute the after tax profit margin for Megaframe Computer: 10.0% 14.29% 11.43% 46.34% MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31, 20XY Sales (all on credit) Cost of goods sold Gross profit Selling and administrative expense Operating profit Interest expense Net income before taxes Taxes (50%) Net income $700,000 400.000 300,000 100.000 200,000 40.000 160.000 80.000 80.000 Based on the above income statement, calculate the times interest earned for Megaframe Computer: 2 times 5 times 4 times 10 times MEGAFRAME COMPUTER COMPANY Balance Sheet As at December 31, 20XY ASSETS Cash Accounts receivable Inventory New plant and equipment Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Retained earnings Total Liabilities and Shareholders' Equity $40,000 60,000 90,000 220.000 $410,000 $60,000 40,000 130,000 80,000 100.000 $410.000 Based on the above balance sheet, Megaframe's debt to total asset ratio is: 56.1% 75.61% 80.49% 90.62% MEGAFRAME COMPUTER COMPANY Balance Sheet As at December 31, 20XY ASSETS Cash Accounts receivable Inventory New plant and equipment Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Retained earnings Total Liabilities and Shareholders' Equity $40,000 60,000 90,000 220.000 $410,000 $60,000 40,000 130,000 80,000 100.000 $410,000 If Megaframe's total sales are $700,000, compute their receivable turnover. 4.4 times 10 times 11.67 times 14.4 times