Laura Bella Company reports the following statement of income: Operating Revenues $4,800 Costs and Expenses....
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Laura Bella Company reports the following statement of income: Operating Revenues $4,800 Costs and Expenses. Cost of Sales (2,000) Selling, Service, Administrative, and General Expense (1,500) Income Before Interest Expense and Income Taxes $1,300 Interest Expense _(180) Income Before Income Taxes $1,120 Income Taxes _(350) Net Income $_770 Note Depreciation expense totals $300, preferred dividends total S60, operating lease payments total $180. Assume that 1/3 of operating lease payments is for interest Required : Compute the fixed charge coverage
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