income statement
Question
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
| TIMES MIRROR AND GLASS Co. Income Statement | ||
| 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 Covered ? times
b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.)
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.)
d.Compute the total asset turnover ratio. (Round your answer to 2 decimal places.)
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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