Some accounting questions. Please help. CPA, I know you can help :)

[thereds]

I'm currently doing some research analysis of some retail companies here in the UK using their Consolidated Balance Sheets and their P&L a/c's. There are some terms here that I don't understand and I was wondering if someone here (CPA ) could help me out. These terms will help me figuring out some ratios that I need to be calculated.

I have the P&L a/c and Balance Sheet posted here as JPG files.
Balance Sheet
Profit and Loss A/C

I'm trying to calculate the Interest Times Cover (ITC) = (EBIT)/(Net Interest Payable)
2003:
The EBIT from the P&L account is £35482
The Net Interest is (£995)
2002:
EBIT is (£23357)
Net Interest is £342
I'm getting lost on this positive figure for Net Interest.

Can someone explain that for me. How would I go about calculating the ITC if the net interest, which is essentially a Net Interest Receivable, is positive??

 

[CPA]

I can't access these geocity sites here at work, so I will try to get an answer for you when I get home tonight.

One question: when you say "Net Interest" are you speaking of expense or balance sheet account?

 

[thereds]

Originally posted by: CPA
I can't access these geocity sites here at work, so I will try to get an answer for you when I get home tonight.

One question: when you say "Net Interest" are you speaking of expense or balance sheet account?

Interest Payable on Long Term Liability.

So, balance sheet.

 

[DaveCSparty]

Um.... interest times cover is calculated with Earnings/Interest Expense..... I guess you can calculate it your way too, but it's not how it is done commonly

 

[kermalou]

Originally posted by: DaveCSparty
Um.... interest times cover is calculated with Earnings/Interest Expense..... I guess you can calculate it your way too, but it's not how it is done commonly

he is in england, everything is backwards there