Question
Assets Amount (USD) Liabilities and Equity Amount (USD) Cash $290,000 Accounts Payable $160,000 Accounts Receivable $220,000 Notes Payable $180,000 Inventory $260,000 Long-term Debt $450,000 Property
Assets | Amount (USD) | Liabilities and Equity | Amount (USD) |
Cash | $290,000 | Accounts Payable | $160,000 |
Accounts Receivable | $220,000 | Notes Payable | $180,000 |
Inventory | $260,000 | Long-term Debt | $450,000 |
Property | $650,000 | Shareholders' Equity | $950,000 |
Calculate the interest coverage ratio for the company based on the provided balance sheet and the EBIT of $300,000.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
