Ontario Appliances Has the Following Data What Is the Interest Coverage for Ontario Appliances in 2X13

question 118

Multiple Choice

Ontario Appliances has the following data: $\begin{array}{llc}&2X13&2X12\\\text { Sales } & \$ 930 & \$ 700 \\\text { Less: Cost of Goods Sold } & \underline{410} & \underline{235} \\\text { Gross Profit } & 520 & 465 \\\text { Less: Operating Expenses } & \underline{260} & \underline{231} \\\text { Operating Income } & 260&234 \\\text { Less: Other Expense: Interest Expense } & \underline{(30) } & \underline{(30) } \\\text { Income before Tax } &230&204 \\\text { Less: Income Tax Expense } &\underline{92} & \underline{82} \\\text { Net Income }& \$ 138 & \$ 122\end{array}$ What is the interest coverage for Ontario Appliances in 2X13? Has the interest coverage improved or not improved since 2X12?

• A)12.7,unknown
• B)7.7,not improved
• C)7.7,improved
• D)8.7,improved
• E)8.7,not improved

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Definitions:

Breakpoint

In computing, a breakpoint is a deliberately inserted pause or halt in a program's execution for debugging purposes. In economics, it refers to a level at which there is a change in the rate or conditions of a process or system.

Holding Cost Percentage

Represents the cost incurred to store inventory over a period, expressed as a percentage of the inventory's total value, including expenses such as warehousing, insurance, and depreciation.

Ordering Cost

Expenses associated with placing an order for additional inventory, including administrative and clerical costs.

Drought Conditions

an extended period of deficient rainfall resulting in water shortages that can affect agricultural production, water supply, and overall ecological systems.