Question: What is the fixed charge coverage ratio? Answer in the form of 5.0x (one decimal place...hint: should end in .0x or .5x) Assume: Sales -

What is the fixed charge coverage ratio? Answer in the form of 5.0x (one decimal place...hint: should end in .0x or .5x)

Assume:

  1. Sales - $1,000
  2. Depreciation - $3
  3. PP&E - $15
  4. Taxes paid - $5
  5. Accounts receivable - $2.5
  6. Debt due within one year - $10
  7. Capital Expenditures - $2
  8. Net Income - $25
  9. Interest expense - $6
  10. Total Debt - $180

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