Question - The Following information is for two companies EURO and AUSSIE.
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Company EURO
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Company AUSSIE
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Sales
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$320,000
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$400,000
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Cost of Goods Sold
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$96,000
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$144,000
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Marketing Expenses
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$48,000
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$64,000
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Administration Expenses
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$32,000
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$48,000
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Interest
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$48,000
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$72,000
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Both EURO and AUSSIE pay tax at a rate of 30% of the profits before tax
a) Calculate the Profit After Tax for EURO and AUSSIE.
b) Calculate the Times Interest Coverage for EURO and AUSSIE.