Question
RRRs income statement for 2019 and its balance sheets for 2019 and 2018 are shown below. Please use them to answer questions (7) through (9).
RRRs income statement for 2019 and its balance sheets for 2019 and 2018 are shown below. Please use them to answer questions (7) through (9). Assume that RRRs financial obligations are non-current i.e., they do not come due within the next year. When answering questions (7) through (9), please round your answers to the first decimal place. Also, when calculating ratios that are a function of balance sheet amounts, do not use average balances. Rather, use the ending balances only.
2019 | |
Revenue | 110 |
Cost of sales | 60 |
Other operating expenses | 30 |
Operating income | 20 |
Financial expense | 3 |
Tax expense | 3 |
Net income | 14 |
2019 | 2018 | 2019 | 2018 | ||
Cash | 15 | 10 | Accounts payable | 27 | 22 |
Inventory | 30 | 20 | Financial obligations | 30 | 30 |
Receivables | 12 | 8 | |||
Fixed assets | 50 | 60 | Equity | 55 | 51 |
Goodwill | 5 | 5 | |||
Total assets | 112 | 103 | Liabilities & equity | 112 | 103 |
Suppose that depreciation and amortization expense of 5 is included in other operating expenses, what was RRRs EBITDA to net interest.
4.7
6.7
8.3
None of the above.
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