The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes. Interest Income before taxes Taxes Income after taxes $259,000 116,000 X 143,000 27,100 115,900 20,000 95,900 33,565 $62,335 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage

The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes. Interest Income before taxes Taxes Income after taxes $259,000 116,000 X 143,000 27,100 115,900 20,000 95,900 33,565 $62,335 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 18BEA

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Direction: Answer the problem below and forecasts the income statement using percent of sales method. (Please refer to the picture)
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