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

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

Interest expense Income taxes Cash flow from operations Finance lease payments Principal

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.

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

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

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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

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