What is the cash coverage ratio for 2011?
A) 11.6
B) 12.8
C) 13.7
D) 17.3
E) 18.8

Question

What is the cash coverage ratio for 2011?
A) 11.6 
B) 12.8 
C) 13.7 
D) 17.3 
E) 18.8

Quizplus · Accepted Answer

To calculate the cash coverage ratio, we need to use the formula Cash Coverage Ratio = (Cash Flow from Operations + Interest Paid) / Interest Paid. 
In this case, for 2011, we can find the following information from the financial statements: 
- Cash Flow from Operations = $153,000 
- Interest Paid = $8,850 
Therefore, Cash Coverage Ratio = ($153,000 + $8,850) / $8,850 = 17.3. 
Thus, the correct answer is D.

What Is the Cash Coverage Ratio for 2011