Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Assess Rylan’s ability to meet its interest obligations by calculating interest coverage ratios using both EBIT and EBITDA
Assess Rylan’s ability to meet its interest obligations by calculating interest coverage ratios using both EBIT and EBITDA.
Income Statement
|
|
2012 2011 |
|
Revenues |
$500,000,000 $450,000,000 |
|
Less: Cost of Goods Sold |
$225,000,000 $200,000,000 |
|
Gross Profit |
$275,000,000 $250,000,000 |
|
Less: Operating Expenses |
$150,000,000 $140,000,000 |
|
EBITDA |
$125,000,000 $110,000,000 |
|
Less: Depreciation |
$25,000,000 $22,500,000 |
EBIT
Less: Interest Expense
EBT
Less: Taxes (40%)
|
$100,000,000 |
$87,500,000 |
|
$10,000,000 |
$9,000,000 |
|
$90,000,000 |
$78,500,000 |
|
$36,000,000 |
$31,400,000 |
Net Income $54,000,000 $47,100,000
Expert Solution
PFA
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
