A company with operating income of $200,000,cash flow from operating activities of $75,000,and gross profit of $380,000 has interest payments of $25,000.What is the company's interest coverage ratio (cash basis) ?
A) 2.67 or 2.67 to 1
B) 3 or 3.0 to 1
C) 4 or 4.0 to 1
D) 15.2 or 15.2 to 1
Correct Answer:
Verified
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