Problem 1. Using the Income Statement for LG Company, compute the following ratios : a. Times interest earned. b. Fixed charge coverage. The total assets for this company equal $ 890,000. Set up the equation for the Du Pont system of ratio analysis, and compute the answer to part e below using (Profit margin ratio X Assets turnover ) c. Return on assets (investment ). LG Company Income statement Sales $ 200,000 Less: Cost of goods sold 90,000 Gross profit 110,000 Less: Selling and administrative expense.... 30,000 Less: Lease expense 20,000 Operating profit (EBIT) 60,000 Less: Interest expense Earning before taxes 55,000 5,000 Less: Taxes (35%). ? Earning after taxes