Which of the following interprets the interest corage ratio of RED Merchandising? Use the financial statements below to answer the question.RED MerchandisingStatement of Financial PositionFor the year ended December 31, 2021Accounts payableP 321,750Income tax payableAccrued expense39,63830,800Current portion of L.T. debt165,000CashP110,400Deferred income taxes151,853Accounts receivable634,800Current liabilitiesP 709,041Inventory167,000Long-term debt81,028Current assetsP 912,200TOTAL LIABILITIESP 790,069Property & equipment, Net297,100Common stock19,500TOTAL ASSETSP1,209,300Paid-in capitalRetained earnings43,100356,631TOTAL EQUITYP419,231Total liabilities & equityP 1,209,300RED MerchandisingStatement of Comprehensive IncomeFor the year ended December 31, 2021SalesP 6,638,400Cost of goods sold6,008,700Gross ProfitP 629,700Operating expensesOperating Profit535,500P 94,200Interest expense32,500Income before taxPhp 61,700Тах31,219Net IncomeP 30,481

Interest coverage ratio = operating profit/interest expense

Answered: Which of the following interprets the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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