The Dockside Inn Has Net Income for the Most Recent

Multiple Choice

The Dockside Inn has net income for the most recent year of $8,450. The tax rate was 38 percent. The firm paid $1,300 in total interest expense and deducted $1,900 in depreciation expense. What was the cash coverage ratio for the year?

A) 10.48 times
B) 11.48 times
C) 12.39 times
D) 12.95 times
E) 13.07 times