Allston-Brighton Corp

question 41

Essay

Allston-Brighton Corp. has total assets of $10 million, total liabilities of $4 million, of which $1 million are non-interest bearing. Interest expense was $180,000. Earnings before interest and taxes were $2.5 million. Depreciation was $1.5 million. Compute the following ratios: Debt ratio, Interest-bearing debt ratio, Times interest earned ratio, and EBITDA coverage ratio.

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Definitions:

Action Orientation

A personality trait or behavior characterized by proactive decision-making and initiative-taking in facing tasks or challenges.

Coordination

The act of organizing and aligning different elements or activities of an organization to ensure they work together effectively towards a common goal.

One-time Activities

One-time activities refer to tasks or events that occur only once and are not repeated, often used in project planning and management.

Projects

Initiatives or plans undertaken to achieve a specific goal, often involving a series of tasks or operations.