Using the income statement for Times Mirror and Glass CO commute the following ratios:
Sales 235,000
Cost of goods sold 121,000
Gross profit 114,000
selling and administrative expense 46,500
less expense 15,000
operating profit * 51,500
interest expense 6,900
earning before taxes 44,600
taxes (30%) 17,840
earning after taxes 26,760
* equals income before interest and taxes
a. commute the interest coverage ratio (round your answer to 2 decimal points)
______times
b. commute the fixed charge coverage ratio (round your answer to 2 decimal places)
______times
the total assets for this company is 182,000. Set up the equation for the DuPont 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)
________times
e. Compute the return on assets (investment) do not round intermediate calculations, input your answer as a percent rounded to 2 decimal places)
___________%
