The Balance Sheet and Income Statement Shown Below Are for Pettijohn

question 27

Multiple Choice

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
-What is the firm's EBITDA coverage?

• A) 3.29
• B) 3.46
• C) 3.64
• D) 3.82

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, usually showing frequency of data intervals.

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two halves.

Skewed

Describes a distribution of data that is not symmetrical, where one tail is longer or fatter than the other.

Standard Deviation

An indicator of how spread out or scattered a collection of numbers is, showing the degree to which these numbers differ from their average value.