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

$15,369

Cost of goods sold

7,373

Cash operating expenses*

2,277

Depreciation and amortization expense

1,629

Operating earnings (EBIT)

6,955

Interest expense

887

Tax expense

811

*included in the cash operating expenses are $771 of operating lease expenses

In addition, $380 of interest was capitalized during the year debt principal of $887 was repaid.

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