The income statement for

Texas

Communications follows. Assume

Texas

Communications signed a three-month,

3%,

$90,000

note on

June

1,

2024,

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

LOADING...

(Click the icon to view the income statement.)

Requirements

1.	Fill in the missing information for Texas's year ended July 31, 2024, 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

Texas's

year ended

July

31,

2024,

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.)

		Texas Communications
		Income Statement
		Year Ended July 31, 2024
Net Sales Revenue				$35,000
Cost of Goods Sold				(12,200)
Gross Profit				22,800
Operating Expenses:
	Selling Expenses		$670
	Administrative Expenses		1,400
	Total Operating Expenses			(2,070)
Operating Income				20,730
Other Income and (Expenses):
	Interest Expense
	Total Other Income and (Expenses)
Net Income before Income Tax Expense
Income Tax Expense				(4,060)
Net Income

	Income Statement
		Year Ended July 31, 2024
Net Sales Revenue				$35,000
Cost of Goods Sold				12,200
Gross Profit				22,800
Operating Expenses:
	Selling Expenses		$670
	Administrative Expenses		1,400
	Total Operating Expenses			2,070
Operating Income				20,730
Other Income and (Expenses):
	Interest Expense		?
	Total Other Income and (Expenses)			?
Net Income before Income Tax Expense				?
Income Tax Expense				4,060
Net Income				$ ?

Dialog content ends

PrintDone