Assignment: Ratio Analysis Exercises And Problems
Use the net income statement for Summer Peebles, Inc., below, to do the following assigned problems.
1. Compute the following earnings coverage ratios:
1. Earnings to fixed charges.
2. Cash flow to fixed charges.
3. Earnings coverage of preferred dividends.
2. Analyze and interpret the earnings coverage ratios in (A).
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.