### Consolidated statement of earnings of anonymous corporation

Assignment Help Accounting Basics
##### Reference no: EM131004109

The consolidated statement of earnings of Anonymous Corporation for the year ended December 31, 2007, is as follows:

 Net sales \$1,550,010,000 Other  income, net 10,898,000 1,560,908,000 Costs and expenses: Cost of goods sold 1,237,403,000 Depreciation  and amortization 32,229,000 Selling, general, and administrative 178,850,000 Interest 37,646,000 1,486,128,000 Earnings from continuing operations  before income taxes and equity earnings 74,780,000 Income taxes 37,394,000 Earnings from continuing operations before equity earnings Equity in net earnings of unconsolidated subsidiaries and affiliated companies 37,386,000 27,749,000 Earnings from continuing  operations Earnings (losses) from discontinued operations, net of applicable income  taxes 65,135,000 6,392,000 Net earnings \$71,527,000

Required:

a. Compute the times interest earned for  2007.

b. Compute the times interest earned for 2007, including the equity income in the coverage.

c. What is the impact of including equity earnings from the coverage? Why should equity income be excluded from the times interest earned coverage?

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