I need the fixed payment coverage ratio

The equation is below / balance sheet and income statement below that and the original question below that.

what is the fixed payment coverage ratio?

BBA 320-7093 Managerial Finance Spring 2019 Online Homework: Chapter 3 HW Save Score: 0 of 1 pt 6 of 7 (5 complete) HW Score: 62.5%, 5 of 8 ... P3-16 (similar to) Question Help Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,410,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages and Creek's recent financial statements, evaluate and recommend appropriate action on the loan request. Industry averages Debt ratio 0.48 Creek Enterprises Income Statement: on Times interest earned ratio 7.26 Fixed-payment coverage ratio 2.07 Creek Enterprises Balance Sheet: Creek Enterprises's debt ratio is .72 . (Round to two decimal places.) Creek Enterprises's times interest earned ratio is 3.01 . (Round to two decimal places.) frd Creek Enterprises's fixed-payment coverage ratio is 1.35 . (Round to two decimal places.) eva s fi izeScore: 0 of 1 pt SE 6 of 7 (5 complete) D HW Score: 62.5%, 5 of 8 ... ve he ts Data Table X a $ i Creek Enterprises Income Statement for the Year Ended December 31, 2019 hich Sales revenue $30,034,000 Less: Cost of goods sold 20,956,000 da $ Gross profits $9,078,000 risk. Less: Operating expenses Selling expense $3,013,000 General and administrative expenses 1,763,000 Lease expense 183,000 Depreciation expense 1,004,000 nts fro Total operating expense 5,963,000 . is eva Operating profits $3,115,000 Less: Interest expense 1,035,000 firm's fit Net profits before taxes $2,080,000 on-size Less: Taxes (rate = 21%) 436,800 Net profits after taxes $1,643,200 Less: Preferred stock dividends 86, 100 Earnings available for common stockholders $1,557, 100 ek ... E ? Print Done k Enterprise loan to as EPIC(similar tal Question Data Table Assets Liabilities and Stockholders' Equity Current assets Current liabilities Cash $1,011,000 Accounts payable $7,955,000 Marketable securities 2,963,000 Notes payable 7,969,000 Accountts receivable 11,998,000 Accruals 485,000 Inventories 7,463,000 Total current liabilities $16,409,000 Total current assets $23,435,000 Long-term debt (includes financial leases)** $19,641,500 Gross fixed assets (at cost)* Stockholders' equity Land and buildings $11,017,000 Preferred stock (24,600 shares, $3.50 dividend) $2,490,000 Machinery and equipment 20,509,000 Common stock (1.03 million Furniture and fixtures 8,045,000 shares at $5.25 par) 5,407,500 Gross fixed assets $39,571,000 Paid-in capital in excess of par value 4,041,000 Less: Accumulated depreciation 12,993,000 Retained earnings 2,024,000 Net fixed assets $26,578,000 Total stockholders' equity $13,962,500 Total liabilities and Total assets $50,013,000 stockholders' equity $50,013,000 *The firm has a 4-year financial lease requiring annual beginning-of-year payments of $183,000. Three years of the lease have yet to run. **Required annual principal payments are $845,000. Enter Print Doneebt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4, 140,000 loan, to as nancial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages ar ecent financial statements, evaluate and recommend appropriate action on the loan request. Industry averages Debt ratio 0.49 Creek Enterprises Income Statement: : Times interest earned ratio 7.20 Fixed-payment coverage ratio 1.98 Creek Enterprises Balance Sheet: EFF To calculate the fixed-payment coverage ratio, use the following formula: Fixed-payment coverage ratio = Earnings before interest and taxes + Lease payments Interest + Lease payments + + {(Principal payments + Preferred stock dividends) x [1 / (1 - 7)]} lua Therefore, , to $3,027,000 + $237,000 ana Fixed-payment coverage ratio = {$1,045,000 + $237,000 + ($823,000 + $110,500) x [1 / (1 -0.21)]} =1.32. Question is complete. alua All parts showing Clos parts evalua remaining Clear All Check Answ 620 comma S tv W EPIC