Rousseau Corporation Has the Following Statement of Income for the Year

question 70

Short Answer

Rousseau Corporation has the following Statement of Income for the year ended Instructions
Calculate the interest-coverage ratio for Rousseau Corporation for May31, 2020. What does this mean?

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Definitions:

Legally Bound

Obligated by law to act in accordance with an agreement.

Restraints Of Trade

Legal limitations placed on business practices and agreements that might unfairly limit competition or control prices.

Free Competition

An economic situation in which businesses operate without undue restrictions, allowing for the natural forces of supply and demand to determine prices and output.

Age Of Majority

The age at which an individual is considered legally capable of conducting himself or herself responsibly and is entitled to vote. In contract law, the age at which one is no longer an infant and can no longer disaffirm a contract.