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Suppose XYZ company was closing its books for the quarter in two weeks. The credit agreement with the bank requires a ratio of (1) income
Suppose XYZ company was closing its books for the quarter in two weeks. The credit agreement with the bank requires a ratio of (1) income available for fixed charges over (2) fixed charges of 1.75 to 1.00. XYZ is in danger of missing the ratio, violating the covenant. Which of the following is the best method of meeting the covenant?
Leave the books open several days into the next quarter. | ||
Report this quarter |
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