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HOW do i figure my interest expense from here? The following income statement is reported for a firm for the fiscal year 2020 (in millions
HOW do i figure my interest expense from here?
The following income statement is reported for a firm for the fiscal year 2020 (in millions of dollars):
Sales | $3,050 |
Cost of sales | 1,700 |
Gross profit | 1,350 |
Selling expenses | 550 |
Administrative expenses | 370 |
Finance costs | 80 |
Net profit before tax | 350 |
Income tax | 105 |
Net profit after tax | 245 |
What is the interest coverage ratio for this firm in 2020?
16.88 times | ||
4.38 times | ||
3.06 times | ||
5.38 times |
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