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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.
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