Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (304) Earnings after taxes *Equals income before interest and taxes. Interest coverage a. Compute the Interest coverage ratio. (Round your answer to 2 decimal places.) Fixed charge coverage times b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) Profit margin Total asset turnover $244,000 135,000 $109,000 47.900 times The total assets for this company equal $240.000. Set up the equation for the Du Pont system of ratio analysis 18, 200 $ 42,900 8,300 c. Compute the pront margin ratio. (Input your answer as a percent rounded to 2 decimal places.) % Return on assets $34,600 13,840 $ 20,760 d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.) times e. Compute the return on assets investment). (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS COMPANY Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (304) Earnings after taxes *Equals income before interest and taxes. Interest coverage a. Compute the Interest coverage ratio. (Round your answer to 2 decimal places.) Fixed charge coverage times b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) Profit margin Total asset turnover $244,000 135,000 $109,000 47.900 times The total assets for this company equal $240.000. Set up the equation for the Du Pont system of ratio analysis 18, 200 $ 42,900 8,300 c. Compute the pront margin ratio. (Input your answer as a percent rounded to 2 decimal places.) % Return on assets $34,600 13,840 $ 20,760 d. Compute the total asset turnover ratio. (Round your answer to 2 decimal places.) times e. Compute the return on assets investment). (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
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
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Complete a,b,c,d,& e please and thank you
Transcribed Image Text:Using the income statement for Times Mirror and Glass Co., compute the following rallos:
TIMES MIRROR AND GLASS COMPANY
Sales
Cost of goods sold
Gross profit
Selling and administrative
expense
Lease expense
Operating profit*
Interest expense
Earnings before taxes
Taxes (30%)
Earnings after taxes
*Equals income before interest
and taxes.
Interest coverage
a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.)
Fixed charge
coverage
b. Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.)
timeB
Profit margin
The total assets for this company equal $240.000. Set up the equation for the Du Pont system of ratio analysis.
Total asset turnover
times
c. Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.)
135 000
$109,000
%a
Return on assets
13.848
$ 20,760
d. Compute the total asset tumover ratio. (Round your answer to 2 decimal places.)
times
e. Compute the return on assets investment). (Do not round Intermediate calculations. input your answer as a
percent rounded to 2 decimal places.)
%
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