Lucas Company Has Provided the Following Information: • Cash Flow

question 37

Multiple Choice

Lucas Company has provided the following information: • Cash flow from operating activities, $360,000
• Net income, $306,000
• Interest expense, $30,000
• Interest cash payments, $20,000
• Income tax payments, $240,000
• Income tax expense, $246,000
What was Lucas' cash coverage ratio?

• A)21.0
• B)31.8
• C)21.2
• D)31.0

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Definitions:

Aggregate Worth

The total value of all assets owned by an individual, company, or entity, calculated by summarizing their individual values.

Auto Repair

The service of fixing or maintaining vehicles to ensure they operate correctly and safely.

Simple Majority Vote

A voting method where the choice receiving more than half of the votes wins, as opposed to an absolute majority that may require a higher threshold.

Operating Agreement

An agreement containing various rights, provisions, and powers that aid in establishing the bylaws of an LLC.