Using the following financial data given below, to determine the appropriate ratios: ASSETS: Cash Inventory LIABILITIES...

  

Transcribed Image Text:

Using the following financial data given below, to determine the appropriate ratios: ASSETS: Cash Inventory LIABILITIES & STOCKHOLDERS EQUITY: Accounts Rec. 4,000 Fixed Assets $ 2,000 2,000 9,000 Total Assets $17,000 Current liabilities Long-term debt Common stock at par Paid in capital in excess of par Retained earnings Total Liabilities & $ 3,000 Stockholder Equity 2,000 3,000 3,000 6,000 $17,000 Sales Credit sales as a % of Total Sales Cost of Goods Sold Income before fixed charges and taxes Interest payments Lease payments Taxes (45% tax rate) Net income after taxes Times Interest Earned is: 3.64 times 7.78 times 8.0 times 6.67 times $20,000 80.0% 40.0% $9,000 1,125 1,350 2,936 $3,589 Using the following financial data given below, to determine the appropriate ratios: ASSETS: Cash Inventory LIABILITIES & STOCKHOLDERS EQUITY: Accounts Rec. 4,000 Fixed Assets $ 2,000 2,000 9,000 Total Assets $17,000 Current liabilities Long-term debt Common stock at par Paid in capital in excess of par Retained earnings Total Liabilities & $ 3,000 Stockholder Equity 2,000 3,000 3,000 6,000 $17,000 Sales Credit sales as a % of Total Sales Cost of Goods Sold Income before fixed charges and taxes Interest payments Lease payments Taxes (45% tax rate) Net income after taxes Times Interest Earned is: 3.64 times 7.78 times 8.0 times 6.67 times $20,000 80.0% 40.0% $9,000 1,125 1,350 2,936 $3,589

Answer rating: 100% (QA)

Times interest earne... View the full answer