a). Altman Corporation has interest expenses of $120,000 annually. Altman’s annual sales are $4 million, its tax rate is 25%, and its net profit margin on sales is 10 percent. What is Altman’s TIE?

b). Back Alley Boys, Inc. had sales of $250,000, cost of goods sold of $80,000, depreciation expense of $27,000, and additions to retained earnings of $33,360. The firm paid out $30,000 in dividends. Assume a 34% income tax rate, what is the times interest earned ratio?

c). Using the following data, compute the value of cost of goods sold for Peterson Brewing:
Current liabilities=$340,000 quick ratio=1.8 inventory turnover=4.0 current ratio=3.3

Answer rating: 100% (QA)

Problem Solving a Altman Corporation Calculate net income Net profit margin 10 Sales 4 million Net i... View the full answer