What is the firm fixed charge coverage

Reference no: EM13824414

Question-

A firm has operating profit of $210,000 after deducting lease payments of $30,000. Interest expense is $50,000. What is the firm's fixed charge coverage?

a). 6.00x

b). 2.33x

c). 2.00x

d). 3.00x

Additional Requirement-

The question relates to Accounting and it discusses about computation of a firm's fixed charge coverage.

Reference no: EM13824414

Questions Cloud

What is the debt to total asset ratio : A firm has total assets of $3,000,000. It has $1,200,000 in long-term debt. The stockholders equity is $1,000,000. What is the debt to total asset ratio

State power began as dominant power in our federal system : State power began as the dominant power in our federal system, but the federal government has surpassed state power and become the dominant power today.

What kind of children will our own kids be associating : What about our schools? I understand that we would be receiving government funds to expand our schools and hire more teachers, but what kind of children will our own kids be associating with on a daily basis?

Essay about breach of contracts with an example : Write a small essay about breach of contracts with an example.

What is the firm fixed charge coverage : A firm has operating profit of $210,000 after deducting lease payments of $30,000. Interest expense is $50,000. What is the firm's fixed charge coverage

Explore a time when you felt like other : Explore a time when you felt like "other"-when you were made to feel invisible, excluded, or too visible. Explore a time when a connection was made between you and an "other."

Functional orientation and its relation to logistics : Functional Orientation And Its Relation To Logistics

Discusses about accounts receivable staying the same : The problem belongs to Basic Accounting and it discusses about accounts receivable staying the same and credit sales going up

Can destroyed item be claimed under compensation : Naiker has recently developed an interest in playing the piano. He wanted to buy a second hand piano to learn. Ahmad who owned a piano posted an offer by letter to Naiker on Monday 2 June as follows: "Good quality piano for sale $2,500.

User Account

All Pages