1. Company XYZ, Inc. reported a total sales revenue of P15,000,000 of which 20% pertains...
50.1K
Verified Solution
Link Copied!
Question
Finance
1. Company XYZ, Inc. reported a total sales revenue of P15,000,000 of which 20% pertains to the cost of goods sold. In addition, operating expenses in the most reporting period were P240,000 in salaries, P750,000 in rent, P300,000 in utilities and P150,000 in depreciation. Interest expense for the period amounted to P2,500,000. The tax rate is 30%. Determine the interest coverage ratio using EBIT.
a.23.34%
b.22.58%
c.23.67%
d.31.02%
2. Using the same information in the previous question, determine the interest coverage ratio using EBITDA.
a.31.02%
b.23.34%
c.22.58%
d.23.67%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
