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

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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