Exhibit 12
VALLEY RESOURCES, INC. AND SUBSIDIARIES
COMPUTATION OF THE CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
For the six months ended For the year ended
February 28, August 31,
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1997 1996 1996 1995 1994 1993 1992
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Earnings:
Net Income...................... $2,488,076 $3,079,420 $3,998,360 $2,554,925 $3,826,026 $3,727,230 $3,114,599
Provisions for income taxes..... 1,164,344 1,523,401 1,541,160 753,033 1,350,965 1,444,936 1,012,043
Fixed Charges................... 1,845,798 1,837,404 3,683,294 3,599,618 3,191,174 2,860,700 2,350,821
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Total........................ $5,498,218 $6,440,225 $9,222,814 $6,907,576 $8,368,165 $8,032,866 $6,477,463
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Fixed Charges:
Interest on debt................ 1,633,103 1,628,167 3,259,495 3,247,752 2,846,880 2,572,082 2,091,019
Amortization of debt expense.... 28,965 28,965 57,931 57,931 57,931 53,056 57,710
Interest component of rent...... 183,730 180,272 365,868 293,935 286,363 235,562 202,092
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Total........................ $1,845,798 $1,837,404 $3,683,294 $3,599,618 $3,191,174 $2,860,700 $2,350,821
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Ratio of Earnings to Fixed Charges.. 3.0 3.5 2.5 1.9 2.6 2.8 2.8
Pro Forma:
Actual fixed charges............ $1,845,798 $3,683,294
Pro forma interest on debt to be
sold, assuming a rate of 8.3% 290,500 581,000
Actual interest on debt to be
retired...................... (373,629) (774,498)
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Pro forma fixed charges......... $1,762,669 $3,489,796
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Pro forma ratio of earnings to
fixed charges................ 3.1 2.6