Excel for Excel Excel Excel for Excel Excel Using the income statement for Times Mirror and Glass Co. below, compute the following ratios: a. The interest coverage. b. The fixed charge coverage. Excel for the The total assets for this company equal $80,000. Set up the equation for the Du Pont system of ratio analysis, and compute c, d, and e. c. Profit margin d. Total asset turnover e. Return on assets (investment) TIMES MIRROR AND GLASS CO. + Income Statement Sales Less: Cost of goods sold Gross profit $1,26,000 93,000 $33,000 Less: Selling and administrative expense 11.000 Home EI Problem 3-22 Problem 3-23 Problem 3-24 Problem 3-36 Problem 3-37 TIMES MIRROR AND GLASS CO. Income Statement Sales $1,26,000 Less: Cost of goods sold 93,000 Gross profit $33,000 Less: Selling and administrative expense 11,000 Less: Lease expense 4,000 Operating profit $18,000 Less: Interest expense 3,000 Earnings before taxes Less: Taxes (40%) Earnings after taxes "Equals income before interest and taxes. $15,000 4,500 $10,500 Solution Problem 3-24 Instructions Enter formulas to calculate the following ratios. If possible, use cell references to the income statement. a. Times interest earned b. Fixed charge coverage c-e. Return on assets: Profit Margin 5 times times FORMULA X Total assets turnover FORMULA FORMULA