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Use the following information to compute the after-distribution debt service coverage rätio of the presented below. Selected Company's financials: • net income: $209,000 • interest expense:$970 • tax:$920 depreciation expense:$872 • amortization expense:$776 • non-cash expenses: $285 distribution:$110,000

Use the following information to compute the after-distribution debt service coverage rätio of the presented below. Selected Company's financials: • net income: $209,000 • interest expense:$970 • tax:$920 depreciation expense:$872 • amortization expense:$776 • non-cash expenses: $285 distribution:$110,000

FINANCIAL ACCOUNTING
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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Use the following information to compute the after-distribution debt service coverage ratio of the company presented below. Selected Company's financials: • net income: $209,000 • interest expense:$970 • tax:$920 • depreciation expense:$872 • amortization expense:$776 • non-cash expenses: $285 • distribution:$110,000 Term Loan information: Loan amount: $100,000 Repayment term: P+1, monthly Amortization: 4years Interest rate: 3.68%, fixed round your answer to nearest 2 decimal - i.e. for 1.466666 input as 1.47; or, for 1.4444444 input as 1.44.
Transcribed Image Text:Use the following information to compute the after-distribution debt service coverage ratio of the company presented below. Selected Company's financials: • net income: $209,000 • interest expense:$970 • tax:$920 • depreciation expense:$872 • amortization expense:$776 • non-cash expenses: $285 • distribution:$110,000 Term Loan information: Loan amount: $100,000 Repayment term: P+1, monthly Amortization: 4years Interest rate: 3.68%, fixed round your answer to nearest 2 decimal - i.e. for 1.466666 input as 1.47; or, for 1.4444444 input as 1.44.
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