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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

Essentials Of Investments
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
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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
Transcribed Image Text: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
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