The Docksider Has Net Income for the Most Recent Year

question 44

Multiple Choice

The Docksider has net income for the most recent year of $24,650 and a combined tax rate of 24 percent. The firm paid $1,800 in total interest expense and deducted $2,900 in depreciation expense. What was the cash coverage ratio for the year?

• A) 20.48 times
• B) 11.48 times
• C) 19.39 times
• D) 20.63 times
• E) 13.69 times

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Definitions:

Collective Farms

A form of agricultural production in which multiple farmers run their holdings as a joint enterprise.

Private Ownership

The holding of assets by non-governmental entities or individuals, allowing control and earning potential from those assets.

Soviet Union

A former federal socialist state in Eurasia that existed from 1922 to 1991, made up of 15 republics, and was the largest country in the world.

Competition

The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume.