Compute cash debt coverage ratio


Using the following information, calculate the ratios noted below. Show your calculations

Cash $ 500,000
Net Accounts Receivables $1,250,000
Other Assets $ 100,000
Current Liabilities $ 750,000
Gross Sales $2,500,000
Common Stock $1,100,000
Average Current Liabilities $ 800,000
Average Total Liabilities $1,250,000
Treasury Stock $ 500,000
Cost of Goods Sold $1,000,000
Current Assets $3,500,000
Average Inventory $ 650,000
Average Net Receivables $1,075,000
Net Credit Sales $2,225,000
Cash Provided by Operations $ 375,000
Accumulated Depreciation $ 922,000


a. Current Ratio
b. Receivables Turnover
c. Current Cash Debt Coverage Ratio
d. Inventory Turnover Ratio
e. Cash Debt Coverage Ratio

 

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Accounting Basics: Compute cash debt coverage ratio
Reference No:- TGS085093

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