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  3. 1. company xyz, inc. reported a total sales revenu

1. Company XYZ, Inc. reported a total sales revenue of P15,000,000 of which 20% pertains...

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Finance

1. Company XYZ, Inc. reported a total sales revenue of P15,000,000 of which 20% pertains to the cost of goods sold. In addition, operating expenses in the most reporting period were P240,000 in salaries, P750,000 in rent, P300,000 in utilities and P150,000 in depreciation. Interest expense for the period amounted to P2,500,000. The tax rate is 30%. Determine the interest coverage ratio using EBIT.

a.23.34%

b.22.58%

c.23.67%

d.31.02%

2. Using the same information in the previous question, determine the interest coverage ratio using EBITDA.

a.31.02%

b.23.34%

c.22.58%

d.23.67%

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