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Using the Income statement for Times Mirror and Glass Co., compute the following ratlos: TIMES MIRROR AND GLASS COMPANY Sales $ 231,eee Cost of goods
Using the Income statement for Times Mirror and Glass Co., compute the following ratlos: TIMES MIRROR AND GLASS COMPANY Sales $ 231,eee Cost of goods sold 138, eee Gross profit $ 93, eee Selling and administrative expense 43,900 Lease expense 11,800 Operating profit $ 37,388 Interest expense 11,180 Earnings before taxes $ 26,280 Taxes (30%) 10,488 Earnings after taxes $ 15,720 *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 $171.000. 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.) Profit margin 6.81% d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.) Total asset 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.)
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