a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places.
a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
100%

Transcribed Image Text:Sales
Cost of goods sold
Gross profit
Fixed charges (other than interest)
Income before interest and taxes
Interest
Income before taxes
Taxes (35%)
Income after taxes.
LANCASTER CORPORATION
a. What is the times-interest-earned ratio?
Note: Round your answer to 2 decimal places.
Times interest earned
Fixed charge coverage
times
b. What would be the fixed-charge-coverage ratio?
Note: Round your answer to 2 decimal places.
times
$ 259,000
209,000
$ 50,000
24,500
$ 25,500
19,000
$ 6,500
2,275
$ 4,225
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you

Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,



Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,

Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education