Question: Calculate the Fixed Charge coverage ratio to the nearest two decimal points using the following information: Year 1 EBIT 1,250,000 Interest expense 125,000 Principal repayments

Calculate the Fixed Charge coverage ratio to the nearest two decimal points using the following information:

Year 1

EBIT 1,250,000

Interest expense 125,000

Principal repayments 210,000

Lease payments monthly 65,000

Average annual salary 100,000

Headcount 4

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