Granny's Greens reported Interest expense of $6,100, Income tax expense of $28,000 and Net income of $86,000. Granny's interest coverage ratio is: (Round your final answer to two decimal places.)
A) 18.69.
B) 0.07.
C) 0.05.
D) 19.69.
D) 19.69.
Explanation: to find EBIT, add interest and income tax expense to net income, then take EBIT/interest expense. Ex: ($6,100 + 28,000 + 86,000) / $6,100 = 19.69
You might also like to view...
Which of the following is the largest part of the advertising/promotion budget?
A) trade promotions B) consumer-oriented price promotions C) retailer promotions D) consumer-oriented product promotions
Bradley Inc has the capacity to make 100,00 . windows. Bradley is currently operating at 100 . capacity. The windows usually sell for $20.00 each. Costs for each window follow: Direct materials $ 5.00 Direct labor 3.00 Variable factory overhead 2.00 Fixed factory overhead 4.00 Total $14.00 The Army has offered to buy 10,00 . windows for $12.00 each for barracks. Bradley should:
a. Reject the offer because it currently does not have enough capacity to accept the order. b. Reject the order because the company will lose $20,00 . on the order. c. Accept the offer because the company will realize $20,00 . in additional contribution margin. d. Accept the offer because the company will realize $40,00 . in additional contribution margin.
Which statement is correct if the null hypothesis for a one-way ANOVA is rejected?
A) The effect of the independent variable is significant. B) The mean value of the dependent variable will be the same for different categories of the independent variable. C) The independent variable does not have a significant effect on the dependent variable. D) Both B and C are correct.
A ________ generally contains between 5 and 15 stores. It is close and convenient for consumers, usually contains a supermarket, perhaps a discount store, and several service stores such as a dry cleaner, a drugstore, and a hardware store
A) regional shopping center B) community shopping center C) neighborhood shopping center D) warehouse club E) factory outlet