Lynd Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000 and total liabilities of P275,000 representing notes payable. The firm’s operating margin is 16.1%, and it pays a 10% rate of interest on its notes payable. How much is the firm’s times-interest earned?

Lynd Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000 and total liabilities of P275,000 representing notes payable. The firm’s operating margin is 16.1%, and it pays a 10% rate of interest on its notes payable. How much is the firm’s times-interest earned?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...

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