maandpa1227
Aug 28, 2007, 11:36 AM
Does this one make sense to anyone?
The Sally Corporation's income statement is given below.
Sally Corporation
Sales $250,000
Cost of Goods Sold .. 145,000
Gross Profit 105,000
Fixed Charges (other than interest) 25,000
Income before interest and taxes .. 80,000
Interest .. 20,000
Income before taxes . 60,000
Taxes (35%) .. 21,000
Income after taxes .$39,000
a. What is Sally's Time-Interest-Earned Ratio?
net income + interest / interest =
60,000 + 20,000 = 80,000 / 20,000 = 4
b. What is the Fixed-Charge-Coverage Ratio? Go to investopedia.com. Formula is given.
80,000 (income before interest and tax) + fixed charge 25,000 = 105,000 / fixed charge before tax 25,000 / interest 20,000= 1.25
c. What is the Net Profit Margin?
Net profit is divided by net revenues... not sure about this one...
d. What is the Gross Profit Margin?
Gross profit = 105,000 less Cost of goods sold = 145,000 = 40,000
Please help!
The Sally Corporation's income statement is given below.
Sally Corporation
Sales $250,000
Cost of Goods Sold .. 145,000
Gross Profit 105,000
Fixed Charges (other than interest) 25,000
Income before interest and taxes .. 80,000
Interest .. 20,000
Income before taxes . 60,000
Taxes (35%) .. 21,000
Income after taxes .$39,000
a. What is Sally's Time-Interest-Earned Ratio?
net income + interest / interest =
60,000 + 20,000 = 80,000 / 20,000 = 4
b. What is the Fixed-Charge-Coverage Ratio? Go to investopedia.com. Formula is given.
80,000 (income before interest and tax) + fixed charge 25,000 = 105,000 / fixed charge before tax 25,000 / interest 20,000= 1.25
c. What is the Net Profit Margin?
Net profit is divided by net revenues... not sure about this one...
d. What is the Gross Profit Margin?
Gross profit = 105,000 less Cost of goods sold = 145,000 = 40,000
Please help!