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How do I calculate based on the Income Statement and Balance sheet below: Times Interest Earned =Earnings before interest & taxes/interest expense, gross? (in thousands)     (in thousands) 2015 2014 Sales (net) 30,500   Cash 400 500 Interest income 500   Short-term investments 300 200    Total Revenue 31,000   Accounts receivable (net) 3,200 2,900 Cost and expenses     Inventory 6,000 5,400   Cost of goods sold 17,600   Total current assets 9,900 9,000   Selling and general administrative expenses 3,550   Property, plant, and equipment 7,100 7,000   Depreciation and amortization expenses 1,890   Total assets 17,000 16,000   Interest Expense 900   Accounts payable 3,700 3,400 Total costs and expenses 23,940   Income taxes payable 900 800   Income before taxes 7,060   Accrued expenses 1,700 1,400 Income taxes -2,800   Total current liabilities 6,300 5,600   Net income 4,260   Long-term debt 2,000 1,800       Total liabilities 8,300 7,400       Common stock ($1 par value) 2,700 2,700       Paid-in capital in excess in par 1,000 1,000       Retained earnings 5,000 4,900       Total stockholders’ equity 8,700 8,600       Total liabilities and equity 17,000 16,000

How do I calculate based on the Income Statement and Balance sheet below: Times Interest Earned =Earnings before interest & taxes/interest expense, gross? (in thousands)     (in thousands) 2015 2014 Sales (net) 30,500   Cash 400 500 Interest income 500   Short-term investments 300 200    Total Revenue 31,000   Accounts receivable (net) 3,200 2,900 Cost and expenses     Inventory 6,000 5,400   Cost of goods sold 17,600   Total current assets 9,900 9,000   Selling and general administrative expenses 3,550   Property, plant, and equipment 7,100 7,000   Depreciation and amortization expenses 1,890   Total assets 17,000 16,000   Interest Expense 900   Accounts payable 3,700 3,400 Total costs and expenses 23,940   Income taxes payable 900 800   Income before taxes 7,060   Accrued expenses 1,700 1,400 Income taxes -2,800   Total current liabilities 6,300 5,600   Net income 4,260   Long-term debt 2,000 1,800       Total liabilities 8,300 7,400       Common stock ($1 par value) 2,700 2,700       Paid-in capital in excess in par 1,000 1,000       Retained earnings 5,000 4,900       Total stockholders’ equity 8,700 8,600       Total liabilities and equity 17,000 16,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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How do I calculate based on the Income Statement and Balance sheet below: Times Interest Earned =Earnings before interest & taxes/interest expense, gross?

(in thousands)     (in thousands) 2015 2014
Sales (net) 30,500   Cash 400 500
Interest income 500   Short-term investments 300 200
   Total Revenue 31,000   Accounts receivable (net) 3,200 2,900
Cost and expenses     Inventory 6,000 5,400
  Cost of goods sold 17,600   Total current assets 9,900 9,000
  Selling and general administrative expenses 3,550   Property, plant, and equipment 7,100 7,000
  Depreciation and amortization expenses 1,890   Total assets 17,000 16,000
  Interest Expense 900   Accounts payable 3,700 3,400
Total costs and expenses 23,940   Income taxes payable 900 800
  Income before taxes 7,060   Accrued expenses 1,700 1,400
Income taxes -2,800   Total current liabilities 6,300 5,600
  Net income 4,260   Long-term debt 2,000 1,800
      Total liabilities 8,300 7,400
      Common stock ($1 par value) 2,700 2,700
      Paid-in capital in excess in par 1,000 1,000
      Retained earnings 5,000 4,900
      Total stockholders’ equity 8,700 8,600
      Total liabilities and equity 17,000 16,000
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