Use the following information to answer this question. Windswept, Inc.
2017 Income Statement
($ in millions)
Net sales $9,500
Cost of goods sold 7,540
Depreciation 320
Earnings before interest and taxes $1,640
Interest paid 93
Taxable income $1,547
Taxes 464
Net income $1,083
Windswept, Inc.
2016 and 2017 Balance Sheets
($ in millions)
2016 2017 2016 2017
Cash $270 $285 Accounts payable $1,470 $1,625
Accounts rec. 1,080 980 Long-term debt 1,160 1,430
Inventory 1,680 1,670 Common stock 3,340 3,040
Total $3,030 $2,935 Retained earnings 490 740
Net fixed assets 3,430 3,900
Total assets $6,460 $6,835 Total liab.& equity $6,920 $7,350
What is the cash coverage ratio for 2017?
a. 4.43 times.
b. 3.11 times.
c. 16.75 times.
d. 667 times.

21.08 times

Explanation:

Calculation to determine the cash coverage ratio for 2017

Using this formula

Cash coverage ratio=(Earnings before interest and taxes+Depreciation)/Interest paid

Let plug in the formula

Cash coverage ratio= ($1,640+$320)/$93

Cash coverage ratio=$1,960/$93

Cash coverage ratio = 21.08 times

Therefore the cash coverage ratio for 2017 is 21.08 times

answer; limited pay life;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.