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

Sales

$13,474

Cost of goods sold

6,802

Cash operating expenses*

2,442

Depreciation and amortization expense

1,955

Operating earnings (EBIT)

6,864

Interest expense

942

Tax expense

1,058

*included in the cash operating expenses are $927 of operating lease expenses

In addition, $459 of interest was capitalized during the year debt principal of $1,054 was repaid.

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