The Lancaster Corporation's income statement is given below. 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. C times $ 223,000 155,000 $ 68,000 33,100 $ 34,900 13,400 $ 21,500 7,525 $ 13,975
The Lancaster Corporation's income statement is given below. 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. C times $ 223,000 155,000 $ 68,000 33,100 $ 34,900 13,400 $ 21,500 7,525 $ 13,975
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
![The Lancaster Corporation's income statement is given below.
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
$ 223,000
155,000
$ 68,000
33,100
$ 34,900
13,400
$ 21,500
7,525
$ 13,975](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70cd1d2f-e044-431b-bbed-147c5be3c27f%2Fe40cc973-7c34-497b-8694-0079ca5d5ba7%2F7cg5jol_processed.png&w=3840&q=75)
Transcribed Image Text:The Lancaster Corporation's income statement is given below.
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
$ 223,000
155,000
$ 68,000
33,100
$ 34,900
13,400
$ 21,500
7,525
$ 13,975
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