Use the Table for the Question(s)below

question 62

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement and other information:
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
-Luther's EBIT coverage ratio for the year ending December 31,2019 is closest to:

• A)1.64.
• B)1.78.
• C)1.98.
• D)2.19.

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Definitions:

Cost of Goods Manufactured

The total production cost for goods completed during a given period, including labor, material, and overhead costs.

Calculate

The process of determining a numerical result or figure, typically by mathematical means.

Period

A specific timeframe for which financial statements are prepared or accounting transactions are evaluated.

Raw Materials Inventory Turnover

A ratio showing how many times a company’s raw materials inventory is used and replenished over a specific period.