Allston-Brighton Corp

question 20

Essay

Allston-Brighton Corp.has total assets of $10 million, and 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.Calculate the following ratios: Debt ratio, Interest-bearing debt ratio and EBITDA coverage ratio.

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Definitions:

Cobalt

A chemical element with symbol Co, known for its magnetic properties and used in alloys, batteries, and as a pigment.

Isotope

Variants of a particular chemical element that differ in neutron number, and consequently in nucleon number, but not in proton number.

Neutrons

Subatomic particles found in the nucleus of an atom, with no electric charge and a mass slightly greater than that of protons.

Carbon

A chemical element with symbol C, known as the basis of all known life on Earth, capable of forming multiple compounds including carbon dioxide and organic materials.