Question: Given the information below, calculate the EBIT coverage ratio for the firm. Key financial information: Total sales 186.7 Accounts payable 29.2 Cost of sales 153.4
Given the information below, calculate the EBIT coverage ratio for the firm. Key financial information: Total sales 186.7 Accounts payable 29.2 Cost of sales 153.4 Notes payable/short-term debt 13.2 Gross Profit 33.3 Current maturities of long-term debt 1.2 Selling, general, and administrative expenses 13.5 Other current liabilities 2.0 Research and development 8.2 Depreciation and amortization 1.2 Long-term debt 14.4 Operating Income 10.4 Deferred taxes 7.6 Interest income (expense) 2.3 Pretax Income 8.1 Total Liabilities 67.6 Taxes 2.0 Stockholders' Equity 110.2 Net Income 6.1
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