The income statement for California Communications follows. Assume California Communications signed a 3-month, 9%, $3,000 note on June 1, 2018, and that this was the only note payable for the company.

Requirements
1. Fill in the missing information for California's year ended July 31, 2018, income statement. Round to the nearest dollar
2. Compute the times-interest-earned ratio for the company. Round to two decimals

Transcribed Image Text:

CALIFORNIA COMMUNICATIONS Income Statement Year Ended July 31, 2018 $ 21,800 Net Sales Revenue Cost of Goods Sold 14,000 Gross Profit 7,800 Operating Expenses: $ 720 Selling Expenses Administrative Expenses 1,650 Total Operating Expenses 2,370 Operating Income 5,430 Other Income and (Expenses): Interest Expense Total Other Income and (Expenses) Net Income before Income Tax Expense Income Tax Expense 1,080 Net Income