Incorporating the impact of the operating leases

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Reference no: EM131905830

Driver Enterprises reports 2015 earnings before interest and taxes (EBIT) of $470,754 and interest expense of $35,026. Included in its reported operating expenses for 2015 were operating lease expenses of $147,000. Based on footnote data and a discount rate of 8% you have already calculated the present value of the company's future operating lease obligations to be $710,775. Calculate the fixed charge coverage ratio after incorporating the impact of the operating leases using the 1/3-2/3 method. Present your answer rounded to two decimal places, e.g., 20.00.

Reference no: EM131905830

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