Tsao Company provided the following income statement for last year: Sales...................................................$16,250,000 Cost of goods sold.....................................6,500,000 Gross margin..........................................$
Question:
Tsao Company provided the following income statement for last year:
Sales...................................................$16,250,000
Cost of goods sold.....................................6,500,000
Gross margin..........................................$ 9,750,000
Operating expenses....................................3,750,000
Operating income....................................$ 6,000,000
Interest expense..........................................500,000
Income before taxes................................$ 5,500,000
Income taxes..........................................1,650,000
Net income..........................................$ 3,850,000
Required:
Calculate the times-interest-earned ratio.
Step by Step Answer:
TimesInterestEarned Rat...View the full answer
Cornerstones of Managerial Accounting
ISBN: 978-1305103962
6th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
