Subject: Accounting A company has an EBIT of $200,000 and annual interest expenses of $50,000. What is the interestcoverage ratio?A) 3.0B) 4.0C) 5.0D) 6.0

Explanation of EBIT (Earnings Before Interest and Taxes): EBIT represents a company's earnings…

Answered: A company has an EBIT of $200,000 and…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...

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Question: Financial Accounting
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Calculate the current liabilities general accounting question
A return on assets of 5.15% means that a company is earning: O a. a $5.15 return on every $100 of assets minus liabilities. O b. a $5.15 return on every $100 of total assets. O c. a $5.15 return on every $100 of current assets. O d. a $5.15 return on every $100 invested in long-term assets.
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a company has current assets of $87,000 (of which $43,000 is inventory and prepaid items) and current liabilities of $43,000. What is the current ratio? What is the acid-test ratio? If the company borrows $14,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? Current Ratio enter the ratio rounded to 2 decimal places :1 Acid Test Ratio enter the ratio rounded to 2 decimal places :1 New Current Ratio enter the ratio rounded to 2 decimal places :1 New Acid Test Ratio enter the ratio rounded to 2 decimal places :1

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A company has an EBIT of $200,000 and annual interest expenses of $50,000. What is the interest coverage ratio? A) 3.0 B) 4.0 C) 5.0 D) 6.0