Ratio Analysis Exercises and Problems

Use the net income statement for Summer Peebles, Inc., below, to do the following assigned problems.

1. Compute the following earnings coverage ratios:
   1. Earnings to fixed charges.
   2. Cash flow to fixed charges.
   3. Earnings coverage of preferred dividends.
2. Analyze and interpret the earnings coverage ratios in (A).

Your submission should:

• Be 1-2 pages for the written portion.
• Include the Excel spreadsheet with computations.
• Clearly separate your responses so your instructor knows the problems you are answering.
• Follow the CSU-Global Guide to Writing and APA Requirements (Links to an external site.)Links to an external site..