Loss before income taxes |
$ | (5,521 | ) | |
Add fixed charges: |
||||
Interest expense |
48,056 | |||
Amortization of debt expense |
2,350 | |||
Interest portion of rent expense |
3,092 | |||
Adjusted income |
$ | 47,977 | ||
Fixed charges: |
||||
Interest expense |
$ | 48,056 | ||
Amortization of debt expense |
2,350 | |||
Interest portion of rent expense |
3,092 | |||
Fixed charges |
$ | 53,498 | ||
Ratio of earnings to fixed charges (1) |
— | |||
| (1) | The ratio of earnings to fixed charges has been computed by adding income before income taxes and fixed charges to derive adjusted income, and dividing adjusted income by fixed charges. Fixed charges consist of interest expense on debt (including the amortization of debt expense) and one-third (the proportion deemed representative of the interest portion) of the rent expense. | |
| The ratio of earnings to fixed charges indicates earning are inadequate to cover fixed charges as defined above. The deficiency totals $5,521. |