New Gen Corp Balance Sheet at 12/31/18 and Income Statement for 2018

($ in Millions)

Balance Sheet

Assets

Cash 13

Receivables (net) 25

Inventory 22

PP & E (net) 100

Goodwill 13

Total assets 173

Liabilities & Equity

Accounts payable 30

Short term debt 5

Long term debt 63

Preferred stock 8

Common Equity + Ret E 67

Total Liabilities + Equity 173

Income Statement

Sales (net) 212

CofGS 129

Gross profit 83

Other expense 51

Depr&Amort 9

Operating Income 23

Interest expense 3

Lease expense 2

PBT 18

Tax 6

PAT 12

1. What was its Cash Flow Financial Leverage using the ratio LTD EBITDA? (x)
2. Calculate New Gens Fixed Charge Coverage ratio for 2018 using: Earnings before Interest, Lease and Tax Fixed Charges (x)