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Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR...

Using the income statement for Times Mirror and Glass Co., compute the following ratios:

TIMES MIRROR AND GLASS COMPANY
Sales $ 244,000
Cost of goods sold 135,000
Gross profit $ 109,000
Selling and administrative expense 47,900
Lease expense 18,200
Operating profit* $ 42,900
Interest expense 8,300
Earnings before taxes $ 34,600
Taxes (30%) 13,840
Earnings after taxes $ 20,760
*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 $240,000. 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.)

Solutions

Expert Solution

jeff jeffy answered 2 years ago
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