3) Net income $ 10,658 Tax rate 34% Total interest expense $ 4,510 Depreciation expense $ &

Question

Question

3)

Net income	$ 10,658
	Tax rate	34%
	Total interest expense	$ 4,510
	Depreciation expense	$ 3,215

What is company's cash coverage ratio?

Answer 1

Answer #1

EBT = Net income / (1 - Tax rate) = $10,658 / (1 - 0.34) = $16,148.48

EBIT = EBT + Interest expense = $16,148.48 + $4,510 = $20,658.48

Cash coverage ratio = (EBIT + Depreciation) / Interest Expense

Cash coverage ratio = ($20,658.48 + $3,215) / $4,510

Cash coverage ratio = 5.29

Answer 2

Similar Homework Help Questions

Delectable Parsnip, Inc.'s, net income for the most recent year was $10,512. The tax rate was...

Delectable Parsnip, Inc.'s, net income for the most recent year was $10,512. The tax rate was 34 percent. The firm paid $3,587 in total interest expense and deducted $5,673 in depreciation expense What was the company's taxable income for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Taxable income What was the company's EBIT for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
Ugh Inc.’s net income for the most recent year was 15,485. The tax rate was 20...

Ugh Inc.’s net income for the most recent year was 15,485. The tax rate was 20 percent. The firm paid 3,836 in total interest expense and deducted 2,515 in depreciation expense. What was the cash coverage ratio of the year?
Panda Inc.’s net income for the most recent year was $16,585. The tax rate was 35...

Panda Inc.’s net income for the most recent year was $16,585. The tax rate was 35 percent. The firm paid $3,946 in total interest expense and deducted $2,625 in depreciation expense. What was the company’s cash coverage ratio for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash coverage ratio times

Pop Evil, Inc.'s net income for the most recent year was $19,208. The tax rate was...

Pop Evil, Inc.'s net income for the most recent year was $19,208. The tax rate was 22 percent. The firm paid $3,856 in total interest expense and deducted $5,091 in depreciation expense. What was the cash coverage ratio for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash coverage ratio times
Delectable Parsnip, Inc.’s, net income for the most recent year was $9,312. The tax rate was...

Delectable Parsnip, Inc.’s, net income for the most recent year was $9,312. The tax rate was 34 percent. The firm paid $3,887 in total interest expense and deducted $5,073 in depreciation expense. What was the company’s taxable income for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Taxable income $ What was the company’s EBIT for the year? (Do not round intermediate calculations and round your answer to 2 decimal places,...
Delectable Parsnip, Inc.’s, net income for the most recent year was $8,795. The tax rate was...

Delectable Parsnip, Inc.’s, net income for the most recent year was $8,795. The tax rate was 21 percent. The firm paid $4,653 in total interest expense and deducted $5,124 in depreciation expense. What was the company’s cash coverage ratio for the year?

Calculating the Cash Coverage Ratio Tommy Badfinger Inc.'s net income for the most recent year was...

Calculating the Cash Coverage Ratio Tommy Badfinger Inc.'s net income for the most recent year was $8,175. The tax rate was 34 percent. The firm paid $2,380 in total interest expense and deducted $1,560 in depreciation expense. What was Tommy Badfinger's cash coverage ratio for the year?
explain and answer please Calculating the Cash Coverage Ratio (LO2] Sherwood Inc.'s net income for the...

explain and answer please Calculating the Cash Coverage Ratio (LO2] Sherwood Inc.'s net income for the most recent year was $13,168. The tax rate was 34 percent. The firm paid $3,605 in total interest expense and deducted $2,382 in depreciation expense. What was the cash coverage ratio for the year?
524257 374554 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash...

524257 374554 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash Receivables Inventories Fixed Assets, Net Payables Accrued Expenses Long-Term Loan Common Equity 30000 62425 50000 11000 10000 50000 72425 Assignment: Prepare an income statement and a balance sheet for is company using the information provided. Calculate: 1. Current ratio 2. Quick ratio 3. NWC-to-total-Assets (Working capital to assets) 4. Ratio of total debt and liabilities to total assets 5. Ratio of total debt and...

511770 367062 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash...

511770 367062 10000 5000 29408 1000 Sales Operating Costs Depreciation Expense Interest Expense Tax Expense Cash Receivables Inventories Fixed Assets, Net Payables Accrued Expenses Long-Term Loan Common Equity 30000 61177 50000 11000 10000 50000 71177 1. Current ratio 2. Quick ratio 3. NWC-to-total-Assets (Working capital to assets) 4. Ratio of total debt and liabilities to total assets 5. Ratio of total debt and liabilities to shareholder's equity 6. Interest coverage 7. Net profit margin 8. Sales to total assets (Asset...