Calculate Cash Coverage Ratio Given the Following Information: Depreciation Expense

question 129

Multiple Choice

Calculate cash coverage ratio given the following information: depreciation expense = $6,000; EBIT = $12,000; times interest earned = 4 times.

• A) 6.0 times
• B) 6.5 times
• C) 7.0 times
• D) 7.5 times
• E) 8.0 times

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