a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places.

a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places.

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 31BEB

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Question

100%

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
$ 259,000
209,000
$ 50,000
24,500
$ 25,500
19,000
$ 6,500
2,275
$ 4,225

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