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

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Please see the attached file.

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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The solution contains calculations of Times-interest-earned ratio and 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 ...

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