Information from a Manufacturing Company's Current Year Income Statement Follows

question 145

Short Answer

Information from a manufacturing company's current year income statement follows:
$$\begin{array} { | l | r | } \hline \text { Sales } & \$ 8 0 0 , 0 0 0 \\\hline \text { Cost of goods sold } & 455,000 \\\hline \text { Gross profit } & \$ 3 4 5 , 0 0 0 \\\hline \text { Operating expenses } &6 5 , 0 0 0 \\\hline \text { Operating income } & \$ 0 , 0 0 0 \\\hline \text { Interest expense } & 3 2 , 0 0 0 \\\hline \text { Income before taxes } & \$ 8 , 0 0 0 \\\hline \text { Income taxes expense } & 12,400 \\\hline \text { Net income } & \$ 3 5 , 6 0 0 \\\hline\end{array}$$
Calculate the company's times interest earned.

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Definitions:

Pollution Fee

A charge imposed on entities that emit pollutants, aimed at reducing environmental damage by incorporating the cost of pollution into the emitter's financial calculations.

Marginal External Cost

The cost of producing one additional unit of a good or service that is borne by society but is not considered by the produce.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Oil Refinement

The industrial process of transforming crude oil into usable products including fuels, lubricants, and petrochemicals.