Ashavinbhai The Simmons Corporation's income statement is given below.SIMMONS CORPORATIONSalesCost of goods soldGross profitFixed charges (other than interest)Income before interest and taxesInterestIncome before taxesTaxesIncome after taxesX$231,000116,000115,00029,700X85,30015,900a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.)Times interest earned69,40024,290$45,110b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.)Fixed charge coverage

Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes Income after taxes $231,000 116,000 X 115,000 29,700 85,300 15,900 69,400 24,290 $45,110 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage

The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes Income after taxes $231,000 116,000 X 115,000 29,700 85,300 15,900 69,400 24,290 $45,110 a. What is the times interest earned ratio? (Round the final answer to 2 decimal places.) Times interest earned b. What would be the fixed charge coverage ratio? (Round the final answer to 2 decimal places.) Fixed charge coverage

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 18BEA

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