Question
In 2020, Ferez Inc. (Ferez) earned a gross profit of 40% on sales of $8.0 million. Operating expenses (selling, administrative and depreciation expenses) for the
In 2020, Ferez Inc. (Ferez) earned a gross profit of 40% on sales of $8.0 million. Operating expenses (selling, administrative and depreciation expenses) for the year totalled $2.0 million. Ferez's only interest-bearing debt is a 5.0%, $3.0 million bond issue.
Assuming that Ferez's corporate tax rate is 30%, what is the company's interest coverage ratio?
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Financial Accounting
Authors: Jan Williams, Sue Haka, Mark Bettner, Joseph Carcello
15th Edition
0077328701, 9780077328702
