Question: Using the following selected income statement data for KRJ Enterprises, calculate the EBITDAR coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00.

Using the following selected income statement data for KRJ Enterprises, calculate the EBITDAR coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00.

Sales

$13,950

Cost of goods sold

6,914

Cash operating expenses*

2,461

Depreciation and amortization expense

1,316

Operating earnings (EBIT)

6,693

Interest expense

976

Tax expense

893

*included in the cash operating expenses are $1,159 of operating lease expenses

In addition, $394 of interest was capitalized during the year debt principal of $810 was repaid

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!