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Income Statement Calculations

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Times Interest Earned
Fixed Charge Coverage
Debt Ratio
Debt/Equity Ratio
Debt to Tangibility Net Worth

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a. 1. Times Interest Earned =

2004: $280,000 - $156,000 = 7.29 times per year
$17,000

2003: $302,000 - $157,000 = 9.06 times per year
$16,000

2002: $286,000 - $154,000 = 8.80 times per year
$15,000

2001: $270,000 - $150,000 = 8.28 times per year
$14,500

2000: $248,000 - $147,000 = 4.39 times per year
$23,000

Recurring Earnings, Excluding
Interest, Tax Expense, Equity
Earnings, and Minority Earnings +

2. Fixed Charge Coverage = Interest Portion of Rentals
Interest Expense, Including
Capitalized Interest + Interest
Portion of Rentals

2004: $280,000 - $156,000 + ...

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Manal Elkhoshkhany, MBA
Education
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  • MBA, California State University, Sacramento
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