The income statement for Colorado Communications follows. Assume Colorado Communications signed a 120-day, 6%, $ 4,000 note on June 1, 2015, and that this was the only note payable for the company.

Requirements
1. Fill in the missing information for Colorado’s year ended July 31, 2015, income statement.
2. Compute the times-interest-earned ratio for thecompany.

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COLORADO COMMUNICATIONS Income Statement Year Ended July 31, 2015 Sales Revenue 28,000 5,040 3,360 Less: Sales Retums and Allowances Sales Discounts Net Sales Revenue Cost of Goods Sdld Gross Frofit Operating Expenses: 19,600 12,600 7,000 Selling Expenses Administrative Expenses Total Expenses 700 1,750 2,450 4,550 Operating Income Other Revenues and (Expenses): Interest Expense Total Other Revenues and (Expenses) Net Income before Income Tax Expense Income Tax Expense Net Income 900