Compute the income statement for times mirror and glass co

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Question: Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales $ 209,000 Cost of goods sold 106,000 Gross profit $ 103,000 Selling and administrative expense 41,500 Lease expense 19,600 Operating profit* $ 41,900 Interest expense 8,800 Earnings before taxes $ 33,100 Taxes (30%) 13,240 Earnings after taxes $ 19,860 *Equals income before interest and taxes. a.Compute the interest coverage ratio. (Round your answer to 2 decimal places.) b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) The total assets for this company equal $226,000. Set up the equation for the Du Pont system of ratio analysis. c.Compute the profit margin ratio. (Input your answer as a percent rounded to 2 decimal places.) d.Compute the total asset turnover ratio. (Round your answer to 2 decimal places.) e. Compute the return on assets (investment). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places).

Reference no: EM131441781

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