The long-term debt section of the balance sheet of the Queen Anne's Lace Corporation appears as follows:

Question:

The long-term debt section of the of the Queen Anne's Lace appears as follows:
9 1/4% mortgage bonds………………….. $2,500,000
12 3/8%% second mortgage bonds………. 1,500,000
10 1/4% debentures………………………. 1,000,000
14 1/2% subordinated debentures………… 1,000,000
$6,000,000
If the average earnings before interest and taxes of the company is $1.5 million and all debt is long term, what is the overall interest coverage?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...