Orion Dynamics Ltd. reported a net income of $25,200 for the most recent year. The tax rate was 30%. The firm paid $5,400 in total interest expense and deducted $3,800 in depreciation expense. Calculate the cash coverage ratio for the year.

Orion Dynamics Ltd. reported a net income of $25,200 for the most recent year. The tax rate was 30%. The firm paid $5,400 in total interest expense and deducted $3,800 in depreciation expense. Calculate the cash coverage ratio for the year.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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Question

Please give correct solution this financial accounting question

Orion Dynamics Ltd. reported a net income of $25,200
for the most recent year. The tax rate was 30%. The firm
paid $5,400 in total interest expense and deducted
$3,800 in depreciation expense.
Calculate the cash coverage ratio for the year.

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