Question
Lucas Company has provided the following information: Cash flow from operating activities, $362,500 Net income, $311,000 Interest expense, $33,750 Interest cash payments, $22,500 Income tax
Lucas Company has provided the following information:
Cash flow from operating activities, $362,500
Net income, $311,000
Interest expense, $33,750
Interest cash payments, $22,500
Income tax payments, $265,000
Income tax expense, $248,500
Using the modified method discussed in the text, what was Lucas' cash coverage ratio?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren
3rd Canadian Edition
0130355801, 978-0130355805
