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Unformatted text preview: 1.90 b. Quick ratio 1.10 c. Debttototalassets ratio 44% d. Asset turnover 3.20 e. Average collection period 44.21 nt ith 75 percent of eet. Foundations of Financial Manageme Problem 320 Objective Debtutilization ratios Student Name: Course Name: Student ID: Course Number: The Lancaster Corporation's income statement is given below. a. What is the timesinterestearned ratio? b. What would be the fixedchargecoverage ratio? LANCASTER CORPORATION 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 after taxes $31,200 Enter formulas to calculate the following ratios. If possible, use cell references to the inc a. Times interest earned 5 b. Fixed charge coverage 2.33 ent come statement....
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 Spring '11
 taylor
 Balance Sheet

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