The income statement forPennsylvania Communications follows. AssumePennsylvania Communications signed a 3-month, 12%, $40,000 note on June 1, 2018, and that this was the only note payable for the company. Requirements1.Fill in the missing information forPennsylvaniaPennsylvania'syear endedJuly31,2018,income statement. Round to the nearest dollar.2.Compute the times-interest-earned ratio for the company. Round to two decimals.

Times interest earned ratio: This financial metric gauges the company's capability to pay the…

Answered: Requirements 1. Fill in the missing…

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 57P: Grammatico Company has just completed its third year of operations. The income statement is as...

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The income statement for

Pennsylvania Communications follows. Assume

Pennsylvania Communications signed a 3-month, 12%,

$40,000 note on June 1, 2018, and that this was the only note payable for the company.

Requirements

1.	Fill in the missing information for PennsylvaniaPennsylvania's year endedJuly31,2018, income statement. Round to the nearest dollar.
2.	Compute the times-interest-earned ratio for the company. Round to two decimals.

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