Please refer to the income statement for VGA Associates below. If VGA had a principal repayment of
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Please refer to the income statement for VGA Associates below. If VGA had a principal repayment of $8,000 due in 2017, what was its times-burden-covered ratio in 2017?
VGA Associates | |||
Income statement for 2017 | |||
Sales | $ | 200,000 | |
Cost of goods sold | 150,000 | ||
Gross profit | 50,000 | ||
Operating expenses | 20,000 | ||
Operating income | 30,000 | ||
Interest expense | 5,000 | ||
Pre-tax income | 25,000 | ||
Taxes | 5,000 | ||
Net income | $ | 20,000 |
Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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