Multiple Choice
Heavy Load,Inc.has sales of $3,450,000,total assets of $1,240,000,and total liabilities of $275,000,which consist strictly of notes payable.The firm's operating profit margin is 16.1%,and it pays a 10% rate of interest on its notes payable.How much is the firm's interest coverage ratio?
A) 15.6
B) 45.3
C) 20.2
D) 3.0
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Water Works, Inc. has a current ratio
Q11: Differences in accounting practices limit the use
Q19: A firm's average collection period has decreased
Q32: A firm that wants to know if
Q56: A small start-up company should choose an
Q81: Firms that engage in multiple lines of
Q91: Which of the following would be most
Q98: When the present financial ratios of a
Q121: A decrease in _ will increase gross
Q128: By using common size income statements, firms