Sherwills statement of consolidated income is as follows: Net sales ..................... $658 Other income .................... 8 666
Question:
Net sales ..................... $658
Other income .................... 8
666
Costs and expenses:
Cost of products sold ................. 418
Selling, general, and administrative expenses ........ 196
Interest ....................... 16
630
Income before income taxes and extraordinary charges ... 36
Income taxes ..................... 18
Income before extraordinary charge ........... 18
Extraordinary charge—losses on tornado damage (net) .... 4
Net income ...................... $ 14
Depreciation expense totals $200; operating lease payments total $150; and preferred dividends total $50. Assume that one-third of operating lease payments is for interest.
Required
a. Compute the times interest earned.
b. Compute the fixed charge coverage.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
a Times Interest Earned Recurring Earnings Excluding Interest Expense Tax Expense Eq...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
Question Posted:
Students also viewed these Accounting questions
-
Put the following income statement and balance sheet terms (general ledger accounts) in the proper order for properly prepared financial statements: Taxes, interest, gross profit, selling, general...
-
3. Fleury, Inc. is preparing pro-forma financial statements for 20X1. A junior analyst has begun the work. You are asked to complete the statements (see the income statement and balance sheet below)....
-
A 1.5 km straight tunnel is being constructed with work beginning at both ends. Unfortunately, due to an engineering mistake, it will not meet at the center. This would require a change in the...
-
The general term that refers to the tendency of a parcel of air to either remain in place or change its initial position is ________. a. adiabatic b. conditional instability c. stasis d. stability
-
Write user requirements for the CPU case.
-
Write a query to display the starting salary for each employee. The starting salary would be the entry in the salary history with the oldest salary start date for each employee. Sort the output by...
-
A thin-walled composite tube having an outside diameter of \(48 \mathrm{~mm}\) is made by securely bonding an aluminum tube inside a steel tube, as shown in Figure 7.10. Determine the maximum...
-
Using net present value and internal rate of return to evaluate investment opportunities Kerry Woods rich uncle gave him $60,000 cash as a gift for his 40th birthday. Unlike his spoiled cousins who...
-
The City of Evansville operated a summer camp program for at-risk youth. Businesses and nonprofit organizations sponsor one or more youth by paying the registration fee for program participants. The...
-
5. (a) Whatever its form, precipitation results from the condensation of moisture contained in warm air when the air is cooled or forced to cool. Explain the principal methods for achieving cooling....
-
Jones Petro Company reports the following consolidated statement of income: Operating revenues ....................$2,989 Costs and expenses: Cost of rentals and royalties ................ 543 Cost...
-
Kaufman Companys balance sheet follows. Assets Current assets Cash ........................... $ 13,445 Short-term investmentsat cost (approximate market) ...... 5,239 Trade accounts receivable, less...
-
An experiment to compare the spreading rates of five different brands of yellow interior latex paint available in a particular area used 4 gallons (J = 4) of each paint. The sample average spreading...
-
The largest government program aimed exclusively at helping the poor is _________. a) the Earned Income Tax Credit b) public assistance c) food stamps d) Social Security
-
Which statement is the most accurate? a) Our economy would be much better off if the entire globalization process were reversed. b) The globalization process creates billions of winners and no...
-
Our biggest annual trade deficit in our history was more than billion. a) $ 300 b) $400 c) $500 d) $600 e) $700
-
What accounts for the sharp fall in our trade deficit in 2009? a) Our imports fell more than our exports. b) Our exports fell more than our imports. c) The recession was much worse in the rest of the...
-
Which statement is the most accurate? a) The United States can be described as a purely free trading nation. b) The United States is one of the most protectionist nations in the world. c) The rich...
-
Think about a time when you had to deliver bad news. What was the context, who was the audience, and how did you approach the situation? What were your main points, and what medium did you choose?...
-
Find a least expensive route, in monthly lease charges, between the pairs of computer centers in Exercise 11 using the lease charges given in Figure 2. a) Boston and Los Angeles b) New York and San...
-
How can a born global firm enter and succeed in the international market?
-
Nikes principal business activity involves the design, development, and worldwide marketing of high-quality footwear, apparel, equipment, and accessory products for serious and recreational athletes....
-
Nikes principal business activity involves the design, development, and worldwide marketing of high-quality footwear, apparel, equipment, and accessory products for serious and recreational athletes....
-
Nikes principal business activity involves the design, development, and worldwide marketing of high-quality footwear, apparel, equipment, and accessory products for serious and recreational athletes....
-
What is Fibonacci heap? Explain CONSOLIDATE operation with suitable example for Fibonacci heap ?
-
Discuss the impact of global supply chain disruptions, exacerbated by events like the COVID-19 pandemic, on inventory management strategies and market resilience across various industries?
-
A pharmaceutical retailer decided to host a website for home delivery of medicines according to user orders. The web application is deployed on a single Amazon EC2 instances. within a few months, the...
Study smarter with the SolutionInn App