Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Radio Heed, Incorporated's income statement and other financial information for the current year is presented below. Radio Heed, Incorporated Income Statement For the year ended
Radio Heed, Incorporated's income statement and other financial information for the current year is presented below. Radio Heed, Incorporated 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 $ 204,131 73,360 130,771 13,635 117,136 4,197 112,939 4,314 $ 108,625 Balance sheet information: Current assets Noncurrent assets Current liabilities Long-term debt $ 254,500 509,000 59,000 118,000 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.) Percent (%) 100 38 Radio Heed, Incorporated Income Statement For the year ended December 31 Amount Sales revenue $ 204,131 Cost of goods sold 73,360 Gross profit 130,771 Selling, general, and administrative expenses 13,635 Operating income 117,136 Interest expense 4,197 Income before taxes 112,939 Income tax expense 4,314 Net income $ 108,625 62 7 55 2 53 2 51
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