Question
The Lancaster Corporations income statement is given below. Sales $280,000 Cost of goods sold $211,000 Gross profit $69,000 Fixed charges (other than interest) $27,900 Income
The Lancaster Corporations income statement is given below. Sales $280,000 Cost of goods sold $211,000 Gross profit $69,000 Fixed charges (other than interest) $27,900 Income before interest and taxes $41,100 Interest $12,700 Income before taxes $28,400 Taxes (35%) 9,940 Income after taxes $18,460. A. What is the times-interested-earned ratio?round your answer to 2 decimal places B. What would be the fixed-charge-coverage ratio? Round your answer to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
