The income statement for California Communications follows. Assume California Communications signed a three-month, 9%, $3,000 note on June 1, 2024, and that this was the only note payable for the company.

Requirements 

1. Fill in the missing information for California’s year ended July 31, 2024, income statement. Round to the nearest dollar.
2. Compute the times-interest-earned ratio for the company. Round to two decimals.

Transcribed Image Text:

CALIFORNIA COMMUNICATIONS Income Statement Year Ended July 31, 2024 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Income and (Expenses): Interest Expense Total Other Income and (Expenses) Net Income before Income Tax Expense Income Tax Expense Net Income $ 720 1,650 ? $ 21,800 14,000 7,800 $ 2,370 5,430 ? ? 1,080 ?