Coverage Ratios: Fahr Company Had Depreciation Expenses of $630,715, Interest

question 70

Multiple Choice

Coverage ratios: Fahr Company had depreciation expenses of $630,715, interest expenses of $112,078, and an EBIT of $1,542,833 for the year ended June 30, 2006. What are the times interest earned and cash coverage ratios for this company?

• A) 19.4 times; 12.7 times
• B) 17.3 time; 11.4 times
• C) 13.8 times; 19.4 times
• D) None of the above

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