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(Ratio Analysis): Last year Co. XYZ had sales of $ 400,000, with cost of goods sold of $ 112,000. The firm had operating expenses of
(Ratio Analysis): Last year Co. XYZ had sales of $ 400,000, with cost of goods sold of $ 112,000. The firm had operating expenses of $ 130,000, and an increase in retained earnings of $ 58,000. There are currently 22,000 common shares issued and the firm pays $ 1.60 dividend per share.
A. Assuming that the firm's profits are taxed at 34%, build an Income Statement for the firm.
B. Compute the "Operating Profit Margin" for the signature.
C. What was the times interest earned?
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