Assume a company's Income Statement for Year 9 is as follows: Year 9 (in 000s) Income Statement Data Total Revenues Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) Other Income (Expense) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) $ 650,000 380,000 45,000 53,000 11,000 161,000 -2,600 -10,800 147,600 44,280 $ 103,320 Based on the above income statement data, the company's interest coverage ratio anc operating profit margin are 14.91 and 24.8%. 17.22 and 24.6%. 19.29 and 21.4%. 16.71 and 23.3%. 13.67 and 15.9%.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company's Income Statement for Year 9 is as follows:
Year 9
(in 000s)
Income Statement Data
Total Revenues
Cost of Goods Sold
Delivery Costs
Marketing Costs
Administrative Expenses
Operating Profit (Loss)
Other Income (Expense)
Interest Income (Expense)
Pre-tax Profit (Loss)
Income Taxes
Net Profit (Loss)
$ 650,000
380,000
45,000
53,000
11,000
161,000
-2,600
-10,800
147,600
44,280
$ 103,320
Based on the above income statement data, the company's interest coverage ratio and its
operating profit margin are
14.91 and 24.8%.
17.22 and 24.6%.
19.29 and 21.4%.
16.71 and 23.3%.
13.67 and 15.9%.
Transcribed Image Text:Assume a company's Income Statement for Year 9 is as follows: Year 9 (in 000s) Income Statement Data Total Revenues Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) Other Income (Expense) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) $ 650,000 380,000 45,000 53,000 11,000 161,000 -2,600 -10,800 147,600 44,280 $ 103,320 Based on the above income statement data, the company's interest coverage ratio and its operating profit margin are 14.91 and 24.8%. 17.22 and 24.6%. 19.29 and 21.4%. 16.71 and 23.3%. 13.67 and 15.9%.
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