A firm has sales of $68,400,costs of $42,900,interest paid of $2,100,and depreciation of $6,500.The tax rate is 34 percent.What is the value of the cash coverage ratio?
A)12.14
B)15.24
C)17.27
D)23.41
E)24.56

Name: A firm has sales of $68,400,costs of $42,900,interest paid of $2,100,and depreciation of $6,500.The tax rate is 34 percent.What is the value of the cash coverage ratio? A)12.14 B)15.24 C)17.27 D)23.41 E)24.56
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Question

Quizplus · Accepted Answer

Cash coverage ratio = ($68,400 - $42,900)/$2,100 = 12.14

A Firm Has Sales of $68,400,costs of $42,900,interest Paid of $2,100,and