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

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

Sales

$15,043

Cost of goods sold

7,168

Cash operating expenses*

2,376

Depreciation and amortization expense

1,715

Operating earnings (EBIT)

6,283

Interest expense

682

Tax expense

804

*included in the cash operating expenses are $784 of operating lease expenses

In addition, $367 of interest was capitalized during the year debt principal of $864 was repaid.

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