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:

Financial Performance

evaluates the financial health of a company, including profitability, revenue, expenses, and cash flow.

Classical View

An approach to management and economics that emphasizes rationality, efficiency, and formal organizational structures.

Healthier Foods

Foods that are beneficial to health, often characterized by being low in unhealthy fats, sugars, and salts, and rich in nutrients.

Energy-Efficient Products

Goods designed to use less energy than standard products, reducing energy consumption and environmental impact.