Question 17

Question text

Profit before tax is $90,000 and expenses include interest of $10,000. What is the interest coverage ratio (times interest earned)?

Select one:

12 times

11 times

10 times

9 times

Question 18:

Non-current assets total $5million. Current assets are $1million. Non-current liabilities and equity are $4million and $1million respectively. What is the current ratio?

Select one:

2.00

1.75

1.17

1.00