Assume a company\'s Income Statement for Year 12 is as follows: Income Statement

Question

Assume a company's Income Statement for Year 12 is as follows:

Income Statement Data Year 12 (in 000s)
Net Revenues from Footwear Sales $ 330,000
Cost of Pairs Sold 240,000
Warehouse Expenses 15,000
Marketing Expenses 35,000
Administrative Expenses 8,000
Operating Profit (Loss) 32,000
Interest Income (expenses) (10,000)
Pre-tax Profit (Loss) 22,000
Income Taxes 6,600
Net Profit (Loss) $ 15,400

Based on the above income statement data and the formula for calculating the coverage ratio presented on the Help screen for p. 5 of the Footwear Industry Report, the company

Explanation / Answer

A) 32,000/10,000 = 3.2 (Pretax profit before interest expenses divided by interest expenses)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.