The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross...
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The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes Income after taxes $237,000 167,000 X 70,000 29,500 40,500 20,000 20,500 7,175 $13,325 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes Income after taxes $237,000 167,000 X 70,000 29,500 40,500 20,000 20,500 7,175 $13,325 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage
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The ability of a company to pay its interest obligations is measured by the times interest earne... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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