Milton, Inc. provides the following income statement for 2025: Net Sales $240,000 Cost of Goods Sold 110,000 Gross Profit $130,000 Operating Expenses: Selling Expenses 45,000 Administrative Expenses 12,000 Total Operating Expenses 57,000 Operating Income $73,000 Other Income and (Expenses): Loss on Sale of Capital Assets (26,000) Interest Expense (1,000) Total Other Income and (Expenses) (27,000) Income Before Income Taxes $46,000 Income Tax Expense 5,000 Net Income $41,000 Calculate the times−interest−earned ratio. (Round your answer to two decimal places.)
Milton, Inc. provides the following income statement for 2025: Net Sales $240,000 Cost of Goods Sold 110,000 Gross Profit $130,000 Operating Expenses: Selling Expenses 45,000 Administrative Expenses 12,000 Total Operating Expenses 57,000 Operating Income $73,000 Other Income and (Expenses): Loss on Sale of Capital Assets (26,000) Interest Expense (1,000) Total Other Income and (Expenses) (27,000) Income Before Income Taxes $46,000 Income Tax Expense 5,000 Net Income $41,000 Calculate the times−interest−earned ratio. (Round your answer to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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Milton, Inc. provides the following income statement for 2025:
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Net Sales
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$240,000
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Cost of Goods Sold
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110,000
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Gross Profit
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$130,000
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Operating Expenses:
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|
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Selling Expenses
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45,000
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|
Administrative Expenses
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12,000
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Total Operating Expenses
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57,000
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Operating Income
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$73,000
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Other Income and (Expenses):
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|
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Loss on Sale of Capital Assets
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(26,000)
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Interest Expense
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(1,000)
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Total Other Income and (Expenses)
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(27,000)
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Income Before Income Taxes
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$46,000
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Income Tax Expense
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5,000
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Net Income
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$41,000
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Calculate the
times−interest−earned
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