question:
The Lancaster Corporation’s income statement .
a. What is the times-interest-earned ratio?
b. What would be the fixed-charge-coverage ratio?
Lancaster Corporation
| Sales |
$200,000 |
| Cost of goods sold |
$116,000 |
| Gross profit |
$84,000 |
| Fixed changes(other than inerest) |
24,000 |
| Income before inerest and taxes |
00,000 |
| interest |
12,000 |
| Income before taxes |
48,000 |
| Taxes(355) |
$16,800 |
| Income after taxes |
31,200 |