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Nataliya [291]
3 years ago
12

Use the following information to answer this question.

Business
1 answer:
serg [7]3 years ago
5 0

Answer:

21.08 times

Explanation:

Calculation to determine the cash coverage ratio for 2017

Using this formula

Cash coverage ratio=(Earnings before interest and taxes+Depreciation)/Interest paid

Let plug in the formula

Cash coverage ratio= ($1,640+$320)/$93

Cash coverage ratio=$1,960/$93

Cash coverage ratio = 21.08 times

Therefore the cash coverage ratio for 2017 is 21.08 times

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