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The Lancaster Corporations income statement is given below. LANCASTER CORPORATION Sales $ 246,000 Cost of goods sold 179,000 Gross profit $ 67,000 Fixed charges (other
The Lancaster Corporations income statement is given below.
| LANCASTER CORPORATION | |
| Sales | $ 246,000 |
|---|---|
| Cost of goods sold | 179,000 |
| Gross profit | $ 67,000 |
| Fixed charges (other than interest) | 26,900 |
| Income before interest and taxes | $ 40,100 |
| Interest | 18,100 |
| Income before taxes | $ 22,000 |
| Taxes (35%) | 7,700 |
| Income after taxes | $ 14,300 |
What is the times-interest-earned ratio?
Note: Round your answer to 2 decimal places.
What would be the fixed-charge-coverage ratio?
Note: Round your answer to 2 decimal places.
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