Question
Store A monthly expenses include lease payments of $6,000. Store A shop generated EBITDA in 2021 of $400,000 and has an annual interest expense of
Store A monthly expenses include lease payments of $6,000. Store A shop generated EBITDA in 2021 of $400,000 and has an annual interest expense of $20,000. Annually, it spends $2,000 to replace some equipment. It also has annual principal repayments of $10,000. What is the fixed-charge coverage ratio for Store A?
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
4th Edition
1119607515, 978-1119607519
