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Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of
Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of $2 per share on 10,000 outstanding shares.The tax rate for the company is 40%.The company had cost of goods sold of $175,000 and its accumulated depreciation increased by $25,000. What is its cash coverage ratio?
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