What is cash coverage ratio

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Question - Cash Coverage, Inc. had net sales of $700,000 last year, and increased its retained earnings by $75,000 for the year after paying a dividend of $2 per share on 37,500 outstanding shares. The tax rate for the company is 40%. The company had cost of goods sold of $275,000 and its accumulated depreciation increased by $125,000. What is its cash coverage ratio?

Reference no: EM132433086

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