# brain brian

ption 1: Ratio Analysis Exercises and Problems
Use the net income statement for Summer Peebles, Inc., below, to do the following assigned problems.

Compute the following earnings coverage ratios:

Earnings to fixed charges.
Cash flow to fixed charges.
Earnings coverage of preferred dividends.

Analyze and interpret the earnings coverage ratios in (A).

Summer Peebles, Inc. Consolidated Income Statement (\$ thousands)

Year Ending December 31, 2015
Sales
\$15,000.00
Undistributed Income of Less Than 50%-Owned Affiliates
\$300.00
Total Revenue
\$15,300.00
Cost of Goods Sold
\$7,000.00
\$2,000.00
Depreciation
\$600.00
Rental Expense
\$500.00
Share of Minority Interest in Consolidated Income
\$200.00
Interest Expense
\$400.00
-\$10,700.00
Income Before Taxes
\$4,600.00
Income Taxes
Current
\$900.00
Deferred
\$400.00
-\$1,300.00
Net Income
\$3,300.00
Less Dividends
Common Stock
\$300.00
Preferred Stock
\$400.00
-\$700.00
Earnings Retained for the Year
\$2,600.00

The following changes occurred in current assets and current liabilities for 2015:

Current Accounts                      Increase (Decrease)
Accounts Receivable                             \$900.00
Notes Payable to Bank                          -\$200.00
Inventories                                              -\$800.00
Accounts Payable                                    \$700.00
Dividend Payable                                    -\$100.00

The effective tax rate is 40%.
Shares of minority interests in consolidated income do not have fixed charges.
Interest expenses include:

Interest Incurred (Except Items Below)
\$600.00
-\$300.00
Interest on Capitalized Leases
\$140.00
Interest Incurred
\$440.00
Less Interest Capitalized
-\$40.00
Interest Expense
\$400.00

Amortization of previously capitalized interest (included in depreciation) is \$60.
Interest implicit in operating lease rental payment (included in rental expense) is \$120.

Be 1-2 pages for the written portion.
Include the Excel spreadsheet with computations.

THE ANSWERS ARE INCLUDED IN THIS POST.  1, 2, 3, 4

PAPER MUST BE FORMED AND WRITTEN WITH THE EXCEL SHEET

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.