Two companies, A & B, have the following Income Statements for Year 202X: ($ mil., except...
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Two companies, A & B, have the following Income Statements for Year 202X: ($ mil., except %) Company A Sales Rev. 980 470 210 COGS S,G & A Net Cashflow Borrowing Rate Interest Exp. Asset Turnover 9.00% 125 0.35 Please calculate the following for each firm: 1. Net Cashflow 2. Interest Coverage Ratio 3. Total Amount of Debt 4. Which firm's debt is more risky? Company B 2000 1180 275 7.00% 260 0.43 Two companies, A & B, have the following Income Statements for Year 202X: ($ mil., except %) Company A Sales Rev. 980 470 210 COGS S,G & A Net Cashflow Borrowing Rate Interest Exp. Asset Turnover 9.00% 125 0.35 Please calculate the following for each firm: 1. Net Cashflow 2. Interest Coverage Ratio 3. Total Amount of Debt 4. Which firm's debt is more risky? Company B 2000 1180 275 7.00% 260 0.43
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1 Particulars Sales revenue COGS SGA Net cash flow Company A 980 470 210 300 Company B Comp... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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