Question

Refer to photo.
What is the interest cover ration in 2014?
a) 4
b) 0.2
c) 5
d) 0.25

2014 2013 £000 £000 Revenue 1,500 800 Cost of sales Gross Profit Operating Expenses Operating profit 1,300 700 600 250 Fina

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Operating profit = 400

Finance charges = 80

Interest cover ratio in 2014 = Operating profit/Finance charges

= 400/80

= 5

Correct option is (c)

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.

Add a comment
Know the answer?
Add Answer to:
Refer to photo. What is the interest cover ration in 2014? a) 4 b) 0.2 c)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Refer to the photo. What was the return on equity ( after taxation) in 2014? a)...

    Refer to the photo. What was the return on equity ( after taxation) in 2014? a) 12.3% b) 19.8% c) 20.8% d) 9.6% 2014 2013 £'000 £'000 Revenue 1,500 1,300 Cost of sales 800 700 700 300 Gross Profit Operating Expenses Operating profit Finance charges Profit before taxation 400 80 320 Taxation Profit for year 250 1200 1000 Ordinary share capital (50p) Share premium Account 60 40 Retained profits 1100 1350 2610 2140

  • Refer to attached photo. What was the Gross profit% in 2014: a) 175.0% b) 16.66% c)...

    Refer to attached photo. What was the Gross profit% in 2014: a) 175.0% b) 16.66% c) 87.50% d) 46.66% Extracts from the financial statements of Aberlady plc's latest annual report are given below: 2013 2014 £'000 Revenue 1,500 £'000 1,300 700 Cost of sales Gross Profit Operating Expenses Operating profit Finance charges Profit before taxation Taxation Profit for year 1200 Ordinary share capital (50p) Share premium Account Retained profits 60 1100 1350 2610 2140

  • Refer to photo. What was the earnings Per Share (EPS) in 2014? a) 26.7p b) 10.4p...

    Refer to photo. What was the earnings Per Share (EPS) in 2014? a) 26.7p b) 10.4p c) 9.6p d) 20.8 p 2014 2013 £'000 £'000 Revenue 1,500 1,300 Cost of sales 800 700 Gross Profit 700 600 Operating Expenses 300 250 Operating profit 400 350 Finance charges 50 80 300 Profit before taxation 320 65 70 Taxation 235 250 Profit for year 1000 1200 Ordinary share capital (50p) 40 60 Share premium Account 1100 1350 Retained profits 2140 2610 3

  • Refer to attached photo. What was the percentage increase in revenue between 2014 and 2013? a)...

    Refer to attached photo. What was the percentage increase in revenue between 2014 and 2013? a) 15.38% b) 13.33% c) 14.28% d) 12.5% Extracts from the financial statements of Aberlady plc's latest annual report are given below: 2014 2013 000.3 90.30 1,500 1,300 Revenue 700 800 Cost of sales 700 600 Gross Profit 250 300 Operating Expenses 350 400 Operating profit 50 80 Finance charges 300 320 Profit before taxation 65 70 Taxation 235 250 Profit for year 1000 1200...

  • Refer to photo. What was the Operating profit % in 3013? a) 26.66% b) 58.33% c)...

    Refer to photo. What was the Operating profit % in 3013? a) 26.66% b) 58.33% c) 26.92% d) 19.23% Extracts from the financial statements of Aberlady plc's latest annual report are given below: 2014 2013 900.3 900.3 Revenue 1,500 1,300 Cost of sales 800 700 Gross Profit 700 600 Operating Expenses 300 250 Operating profit 400 350 Finance charges 80 50 Profit before taxation 320 300 Taxation 70 65 Profit for year 235 250 1000 1200 Ordinary share capital (50p)...

  • SAMSUNG 0 8 FG H KL Enter 5 >7 shift The Finance Director of Amben Ltd...

    SAMSUNG 0 8 FG H KL Enter 5 >7 shift The Finance Director of Amben Ltd is concerned about rising short-term interest rates and the poor liquidity of the company. After calculating appropriate ratios (10), prepare a report that comments on the recent performance and financial health of Amben Ltd Income statements for the year ended 31 December 2016 2015 $000 $000 $000 $1000 Turnover 5,300 Cost of sales 4,330 4,000 Gross profit 1,370 1,300 Administration cost 735 620 Operating...

  • What role did Toshiba’s (a) senior management and (b) junior employees play in Toshiba’s deceptive accounting?...

    What role did Toshiba’s (a) senior management and (b) junior employees play in Toshiba’s deceptive accounting? Nature and Amounts of Carryovers Although the practice of carryovers probably began in FY 2008, the Investigation Committee was able to obtain detailed information about them only from the beginning of FY 2011. The carryover balances at the end of fiscal years 2011 through 2014 are presented in Table 2. The carryovers pertained to several different items, which are explained next. Methods related to...

  • Given the value line: a.) what is the top line growth for 2015? b.)Bottom-Line? c.) Annual...

    Given the value line: a.) what is the top line growth for 2015? b.)Bottom-Line? c.) Annual dividen per share? d.) Current ratio in 2014? e.) % bonds of Captial structure f.) p/e ratio g.) beta h.) EBITDA % I.) Long-Debt % change 2015 We were unable to transcribe this image41.65 TO 20.1 (Media 92) ATM 1.12 ** 3.4% YAKE 1965 07 2:22. 87 3. 35.8 COCA-COLA NYSE:KO TIMELINESS 4 Lowered 70115 h: 289 29 SAFETY . 1 New 727190 LEGENDS...

  • SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred...

    SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT