SmartCo. has the following selected information for 20X6 and 20X7: The company pays taxes at the rate

Question:

SmartCo. has the following selected information for 20X6 and 20X7:

The company pays taxes at the rate of 28%.

Required:
Calculate the times-debt-service-earned ratio for 20X6 and 20X7. Comment on what the ratio means and the trend from 20X6 to 20X7.

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Intermediate Accounting Volume 2

ISBN: 9781260881240

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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Question Posted: Apr 08, 2023 06:34 AM

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SmartCo. has the following selected information for 20X6 and 20X7: The company pays taxes at the rate

Question:

Interest expense Income taxes Cash flow from operations Finance lease payments Principal repayments 20X7 $ 39,600 $204,500 $572,600 $285,000 $ 160,000 20X6 $36,700 $ 147,900 $608,200 $436,000 $ 190,000

Step by Step Answer:

Times debt service earned 20X7 572600 39600 204500 39600285000 16000012...View the full answer

Intermediate Accounting Volume 2

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