Use the Following Data to Answer the Question: What Are

question 24

Multiple Choice

Use the following data to answer the question: What are the three interest coverage ratios based on pretax income and interest expense? $\begin{array}{|l|l|l|} \hline& 2015 & 2016 \\\hline \text { Current assets } & \$ 860 & \$ 896 \\\hline \text { Current liabilities } & 710 & 818 \\\hline \text { Debt in current liabilities } & 1 & 39 \\\hline \text { Lurkg-term debt } & 506 & 408 \\\hline \text { Total assets } & 2,293 & 2,307 \\\hline \text { Capilal experuditures } & 111 & 117 \\\hline \text { Change in deferred taxes } & 29 & -20 \\\hline \text { Sales } & 4,100 & 4,192 \\\hline \text { Operating expenses } & 3,307 & 3,260 \\\hline \text { Rental expense } & 0 & 248 \\\hline \text { Gerieral expenses } & 562 & 528 \\\hline \text { Depreciation } & 139 & 136 \\\hline \text { Iriterest experise } & 39 & 30 \\\hline \text { Incuere taxes } & 5 & 8 \\\hline\end{array}$

• A)For 2016,interest coverage ratios based on EBIT,EBITDA,and EBITDAR are 5.47,5.47,and 1.48,respectively.
• B)For 2016,interest coverage ratios based on EBIT,EBITDA,and EBITDAR are 2.36,5.92,and 13.73,respectively.
• C)For 2016,interest coverage ratios based on EBIT,EBITDA,and EBITDAR are 0.93,5.47,and 1.48,respectively.
• D)For 2016,interest coverage ratios based on EBIT,EBITDA,and EBITDAR are 0.93,5.47,and 13.73,respectively.

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Definitions:

College Career

The period of academic study and personal development that occurs while attending a college or university, often in pursuit of a degree.

Frontal Lobe Development

The process of growth and maturation of the frontal lobes of the brain, which is crucial for decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Myelination

The process of forming a myelin sheath around nerves to improve the speed at which electrical impulses propagate along the nerve fiber.

Pubertal Development

The physiological transformations occurring in adolescence that result in a mature sexual capacity, involving rapid periods of growth and the emergence of secondary sexual traits.