The long-term debt section of the balance sheet of the Queen Annes Lace Corporation appears...
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Accounting
The long-term debt section of the balance sheet of the Queen Annes Lace Corporation
appears as follows:
91/4% mortgage bonds $2,500,000
123/8% second mortgage bonds 1,500,000
101/4% debentures 1,000,000
141/2% subordinated debentures 1,000,000
$6,000,000
If the average earnings before interest and taxes of the company is $1.5 million and all debt
is long term, what is the overall interest coverage?
The long-term debt section of the balance sheet of the Queen Annes Lace Corporation
appears as follows:
91/4% mortgage bonds $2,500,000
123/8% second mortgage bonds 1,500,000
101/4% debentures 1,000,000
141/2% subordinated debentures 1,000,000
$6,000,000
If the average earnings before interest and taxes of the company is $1.5 million and all debt
is long term, what is the overall interest coverage?
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