Fixed charge coverage for Tew Company is ________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sales (all on credit)
Cost of goods sold
Gross profit
Sales and administrative expenses
Fixed lease expenses
Depreciation
Operating profit
Interest expense
Profit before taxes
Taxes (35%)
Net income
TEW COMPANY
Income Statement
For the year ended December 31
Refer to the tables above. Fixed charge coverage for Tew Company is
O 23x
O 1.95x
$500,000
$200,000
$300,000
$20,000
$10,000
$40,000
$230,000
$20,000
$210,000
$ 73,500
$ 136,500
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