on Dec,31 the net income is $20,000, interest expense is $5,000. The interest coverage ration is (Ignore taxby assuming tax is zero))O a. 25%O b. 4O c. 5O d. 20%

The objective of the question is to calculate the interest coverage ratio. The interest coverage…

Answered: on Dec,31 the net income is $20,000,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compound Interest on $100, Compounded Daily (365 Days) (Exact Time, Exact Interest Basis) Annual rate for selected rates Days 1.00% 1.50% 1.25% 0.001370 0.002055 | 0.002740 0.003425| 0.004110 |0.004795 0.006849 0.50% 0.75% 1.75% 2.00% 2.25% 2.50% 0.005479 0.010959 1 0.006164 0.006849 0.002740 0.004110 0.006165 0.008219 0.009589 0.014384 0.005480 0.008219 0.012329 0.013699 3 0.004110 0.008219 0.010274 0.012329 0.016439 0.018494 0.020549 4 0.005480 0.010959 0.013699 0.016439 0.019179 0.021920 0.024660 0.027400 0.006850 0.010274 | 0.013699 0.008219 0.012329| 0.016439 0.014384 0.019180 0.021920 0.024660 0.017124 0.020550 0.023975 0.027400 0.034251 0.030826 0.036992 0.043159 0.049326 0.054808 0.024660 0.028771 6 0.020550 0.028771 0.032881 0.041103 7 0.010959 0.038362 0.043844 0.049326 0.009589 0.023975 0.033566 0.047955 0.016440 0.027401 0.032881 0.038363 0.018495 0.020550 0.022605 0.024660 0.017810 | 0.026716 9. 0.012329 0.030826 0.036992 0.043159 0.055493 0.061661 0.013699 0.015070…
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on Dec,31 the net income is $20,000, interest expense is $5,000. The interest coverage ration is (Ignore tax by assuming tax is zero)) O a. 25% O b. 4 O c. 5 O d. 20%