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linda_us
linda_us, Master's Degree
Category: Multiple Problems
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Given the following Financial Statement data: Income Statement

Resolved Question:

Given the following Financial Statement data:

Income Statement Data
Full Year

(in 000s)

Sales Revenues
$200,000

Operating Profit
42,000

Net Interest
9,500

Net Income
$22,750


Balance Sheet Data

Total Current Assets
$70,000

Total Assets
139,000

Total Current Liabilities
26,000

L-T Debt (draw against credit line)
23,000

Total Equity
90,000


Other Financial Data

Depreciation
$16,000

Dividend payments
$9,000

Based on the above figures, the company’s times interest earned ratio (one of the components used in determining the company’s credit rating and defined as operating profit divided by net interest, as per the discussion on the Help screen for the Comparative Financial Performance page of the GSR) is

2.39

4.42

21.1

3.45

None of these
Submitted: 5 years ago.
Category: Multiple Problems
Expert:  linda_us replied 5 years ago.
Answer is 4.42

Regards

Linda
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