Exhibit 12-B
Chrysler Corporation and Consolidated Subsidiaries
Computations of Ratios of Earnings to Fixed Charges
and Preferred Stock Dividend Requirements
(dollars in millions)
Three Months Ended
March 31,
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1997 1996
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(unaudited)
Net earnings before extraordinary item
and cumulative effect of changes in
accounting principles $1,029 $1,005
Add back:
Taxes on income 675 665
Fixed charges 328 350
Amortization of previously capitalized
interest 28 28
Deduct:
Capitalized interest 48 36
Undistributed earnings from less
than fifty percent owned affiliates 2 4
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Earnings available for fixed charges $2,010 $2,008
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Fixed charges:
Interest expense $ 234 $ 272
Capitalized interest 48 36
Credit line commitment fees 2 3
Interest portion of rent expense 44 39
Gross-up of preferred stock dividends
of majority-owned subsidiaries (CFC)
to a pre-tax basis -- --
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Total fixed charges $ 328 $ 350
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Ratio of earnings to fixed charges 6.13 5.74
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Preferred stock dividend requirements 1 2
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Ratio of earnings to fixed charges and
preferred stock dividend requirements 6.11 5.70
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Equity taken up in earnings of less than
fifty-percent owned affiliates $ 2 $ 4
Deduct - Dividends paid by affiliates -- --
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Undistributed earnings from less than
fifty-percent owned affiliates $ 2 $ 4
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The ratio of earnings to fixed charges is computed by dividing earnings
available for fixed charges by total fixed charges. The ratio of earnings to
fixed charges and preferred stock dividend requirements is computed by
dividing earnings for fixed charges by the sum of total fixed charges and
preferred stock dividend requirements.
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