Calculating the Cash Coverage Ratio Kat Inc.s net income for the most recent year was $10,157. The
Question:
Calculating the Cash Coverage Ratio Kat Inc.’s net income for the most recent year was $10,157. The tax rate was 34 percent. The firm paid $3,405 in total interest expense and deducted $2,186 in depreciation expense. What was the cash coverage ratio for the year?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (21 reviews)
This problem requires you to work backward through the income ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Titan Inc.s net income for the most recent year was $ 8,320. The tax rate was 34 percent. The firm paid $ 1,940 in total interest expense and deducted $ 2,730 in depreciation expense. What was Titans...
-
Hedgepeth Inc.s net income for the most recent year was $15,185. The tax rate was 34 percent. The firm paid $3,806 in total interest expense and deducted $2,485 in depreciation expense. What was the...
-
FVA Inc.s net income for the most recent year was $17,590. The tax rate was 34 percent. The firm paid $4,150 in total interest expense and deducted $5,820 in depreciation expense. What was FVAs cash...
-
Considering all of the below, recommend and justify a price for this deal. This is not easy to do. Put yourself in the shoes of the Robertson managers. Who wants it more? The buyer-Monmouth? The...
-
Alpha Centauri A and Alpha Centauri B are binary stars with a separation of 3.45 1012 m and an orbital period of 2.52 109 s. Assuming the two stars are equally massive (which is approximately the...
-
Suppose that when a string of English text is encrypted using a shift cipher f (p) = (p + k) mod 26, the resulting ciphertext is DY CVOOZ ZOBMRKXMO DY NBOKW. What was the original plaintext string?
-
When is verification started and when does it end? At what levels of abstraction are V&V performed?
-
Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes predetermined overhead rates on a...
-
A nozzle is attached to a fire hose by a bolted flange ). The area of the flanged joint is 10in2, and the pressure at the joint is 100psig (psig stands for gauge pressure in psi unit). When the valve...
-
In this mini-case you will perform some procedures required as a part of audit planning. For ease your audit manager has already organized the workpapers and completed several of the required...
-
Return on Equity Firm A and firm B have debttotal asset ratios of 55% and 45% and returns on total assets of 20% and 28%, respectively. Which firm has a greater return on equity?
-
Cost of Goods Sold Holliman Corp. has current liabilities of $410,000, a quick ratio of 1.8, inventory turnover of 4.2, and a current ratio of 3.3. What is the cost of goods sold for the company?
-
The pKa values of oxaloacetic acid are 2.22 and 3.98. a. Which carboxyl group is more acidic? b. The amount of hydrate present in an aqueous solution of oxaloacetic acid depends on the pH of the...
-
Quality control involves testing units and determining if they are within the specifications for the final product. The purpose of the testing is to determine any needs for corrective actions in the...
-
Consider a portfolio consisting of the three risky stocks. You decide to invest 25 percent in Apple, 35 percent in HP and 40 percent in Spree. These stocks show the volatility at the level of 11.15...
-
Draw out the mechanism for the reaction involving butan-2-one with one of the two reagents shown below: primary amine or alcohol. You only need to show one mechanism. To assist you, there are two...
-
The operations vice president of Security Home Bank is investigating the efficiency of the bank's operations. She is concerned about the costs of handling routine transactions at the bank and would...
-
The management team of Blue Industries was evaluating its performance for the first half of the year. Production and sales of its fans were on budget at 3,000 units to date, with the following income...
-
A small charged bead has a mass of \(1.0 \mathrm{~g}\). It is held in a INT uniform electric field \(\vec{E}=(200,000 \mathrm{~N} / \mathrm{C}\), up \()\). When the bead is released, it accelerates...
-
A company pledges their receivables so they may Multiple Choice Charge a factoring fee. Increase sales. Recognize a sale. Collect a pledge fee. Borrow money. Failure by a promissory notes' maker to...
-
How many micrograms are equal to one gram?
-
Capital Budgeting Options in Chapter 10, we discussed Porsches launch of its new Cayenne. Suppose sales of the Cayenne go extremely well and Porsche is forced to expand output to meet demand....
-
Employee Stock Options you own stock in the Hendrix Guitar Company. The company has implemented a plan to award employee stock options. As a shareholder, does the plan benefit you? If so, what are...
-
Convertible Bonds The following facts apply to a convertible bond making semiannual payments: a. What is the minimum price at which the convertible should sell? b. What accounts for the premium of...
-
The following partially complete T-accounts for the month of June along with additional information are from Renfrew & Company: Materials Inventory Work-in-Process Inventory Finished Goods Inventory...
-
The information that follows pertains to Julia Company: (a) Temporary differences for the year 2024 are summarized below. Expenses deducted in the tax return, but not included in the income...
-
Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined overhead rate of $2.60 per machine-hour was based on a...
Study smarter with the SolutionInn App