Summer Peebles Income Statement Problem Must show EVERY step, I must know exactly how you got every number. Everything in the solution and work should be clear and easy to understand on how you got each and every number. Any formulas used should be included, Excel spread sheet would be preferred (I have this table in an excel spread sheet that you can work from ,and I would just have to email it to you since I can't seem to add the file on this question) make sure I can see every formula, and know where you got every number from). If you have any question please let me know, and please pay attention to each number (there's a lot of 0s). -This assignment has different numbers from other questions like it listed elsewhere, so please pay attention to only the numbers provided below. Thank you.

Problem:

A. Compute the following earnings coverage ratios: 1. Earnings to fixed charges. 2. Cash flow to fixed charges. 3. Earnings coverage of preferred dividends.

B. Analyze and interpret the earnings coverage ratios in (A).

Summer Peebles, Inc. Consolidated Income Statement (S thousands) Year Ending December 31,2015 $15,000.00 300.00 $15,300.00 Sales Undistributed Income of Less Than 50%-Owned Affiliates Total Revenue Cost of Goods Sold Selling and Administrative Expenses Depreciation Rental Expense Share of Minority Interest in Consolidated Income Interest Expense Income Before Ta $7,000.00 $2,000.00 $600.00 $500.00 $200.00 $400.0010,700.00) $4,600.00 xes Income Jaxes Current Deferred Net Income Less Dividends Common Stock Preferred Stock 900.00 00.00 ($1,300.00) $3,300.00 $300.00 $400.00($700.00) Earnings Retained for the Year $2,600.00 Additional Information: 1 The following changes occurred in current assets and current liabilities for 2015 Increase (Decrease) Current Accounts Current Accounts Accounts Receivable Inventories Dividend Payable $900.00 Notes Payable to Bank (S800.00) Accounts Payable ($100.00) Increase (Decrease) ($200.00) $700.00 2. The effective tax rate is 40%. 3. Shares of minority interests in consolidated income do not have fixed charges. 4. Inter est expenses include Interest Incurred (Except Items Below) Amortization of Bond Premium Interest on Capitalized Leases Interest Incurred Less Interest Capitalized Interest Expense $600.00 ($300.00) $140.00 $440.00 $40.00 $400.00 5. Amortization of previously capitalized interest (included in depreciation) is $60 6. Interest implicit in operating lease rental payment (included in rental expense) is $120