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Lee Company has provided the following information: Cash flow from operating activities, $240,000 Net income, $204,000 Interest expense, $20,000 Interest cash payments, $10,000 Income tax

Lee Company has provided the following information:

  • Cash flow from operating activities, $240,000
  • Net income, $204,000
  • Interest expense, $20,000
  • Interest cash payments, $10,000
  • Income tax payments, $140,000
  • Income tax expense, $136,000

Using the modified method discussed in the text, what was Lee's cash coverage ratio?

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