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    Times-interest-earned ratio/fixed-charge-coverage ratio

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    Page 77, 20. The Lancaster Corp's income statement is given on page 78.
    a) What is the times-interest-earned ratio?
    b) What would be the fixed-charge-coverage ratio?

    Sales 200,000
    Cost of goods sold 116,000
    Gross profit 84,000
    Fixed charges (other than interest) 24,000
    Income before interest and taxes 60,000
    Interest 12,000
    Income before taxes 48,000
    Taxes (35%) 16,800
    Income and taxes 31,200

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    https://brainmass.com/economics/finance/times-interest-earned-ratio-fixed-charge-coverage-ratio-202430

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    Page 77, 20. The Lancaster Corp's income statement is given on page 78.
    a) What is the times-interest-earned ratio?
    b) What would be the ...

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    The solution contains calculations of Times-interest-earned ratio and fixed-charge-coverage ratio

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