Using the income statement for Times Mirror and Glass Co., compute the following ratios:

TIMES MIRROR AND GLASS COMPANY
Sales	$	255,000
Cost of goods sold		167,000
Gross profit	$	88,000
Selling and administrative expense		40,600
Lease expense		15,800
Operating profit*	$	31,600
Interest expense		7,700
Earnings before taxes	$	23,900
Taxes (30%)		9,560
Earnings after taxes	$	14,340
*Equals income before interest and taxes.

a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.)

Interest coverage ______ times ?

b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.

fixed charge coverage _______times ?

The total assets for this company equal $169,000. Set up the equation for the Du Pont system of ratio analysis. c. Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.)

Profits Margin _______%

d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.)

Total assets turnover ______ times ?

e. Compute the return on assets (investment). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Return on assets _______%