Paint Company Following Are Selected Data from Paint Company's Financial Statements

question 17

Multiple Choice

Paint Company
Following are selected data from Paint Company's financial statements.

-Refer to the Paint Company data. The company's debt service coverage ratio for 2016 indicates that the

• A) company's ability to pay principal and interest to creditors has declined.
• B) company has more net income available to allocate to stockholders after the payment of debt.
• C) company had significantly changes in current assets and current liabilities during the period.
• D) company generates about $2 of cash from operations to cover every $1 of debt.

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