Accounting and Finance
1 The Sally Corporation’s income statement is given below
Cost of Goods Sold 145,000
Fixed Charges (other than interest) 25,000
Income before interest and taxes80,000
Income before taxes 60,000
Taxes (35%) 21,000
Income after taxes$39,000
a What is Sally’s Time-Interest-Earned Ratio?
b What is the Fixed-Charge-Coverage Ratio? Go to
investopediacom Formula is given
c What is the Net Profit Margin?
d What is the Gross Profit Margin?
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