Reference no: EM132816720
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
TIMES MIRROR AND GLASS COMPANY
Sales....................................................................$235,000
Cost of goods sold ............................................121,000
Gross profit.........................................................$114,000
Selling and administrative expense.............47,500
Lease expense ......................................................15,000
Operating profit*.................................................$51,500
Interest expense......................................................6,900
Earnings before taxes.....................................$44,600
Taxes (30%)..............................................................17,840
Earnings after taxes.........................................$26,760
Equals income before interest and taxes.
Problem a. Compute the interest coverage ratio. (Round your answer to 2 decimal places.)
Problem b. Compute the fixed charge coverage ratio.(Round your answer to 2 decimal places.)
The total assets for this company equal $182,000. Set up the equation for the Du Pont system of ratio analysis.
Problem c. Compute the profit margin ratio.(Input your answer as a percent rounded to 2 decimal places.)
Problem d. Compute the total asset turnover ratio.(Round your answer to 2 decimal places.)
Problem e. Compute the return on assets (investment).(Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)