Finenelll I’ltll far the years ended Dee-her 3 1.- r93. –‘l H HHW LIJIig-IEI’JII debt In tetra] capital (5%} Times interest earned times ‘ – :…

19. Which statement below is true with regard to the coverage ratios of LA Theaters?
LA Theaters can cover interest payments with cash in both 2016 and 2015.
LA Theaters does not cover interest payments as well with cash compared to profits.
LA Theaters is having trouble paying for fixed charges due to their low coverage ratios.
LA Theaters could not make interest payments due to the net loss in 2015.
Finenelll I’ltlfll far the years ended Dee-her 31..ue’.r 1-..1.— 3 :- r93."–‘l H HHW LIJIig-IEI’JII debt In tetra] capital (5%}Times interest earned times’ – : – – {times}. _ {times}Cash flew adequacy times}PrelluhlflGross II IfilEflLh {Ev-‘3}’ pee-fit margin {are}Net II I In: _i,|:|_I:D..-‘E.Cash flew In _il1[‘."-‘E-Return on assets {as}Return on mm {as}Cash return en assets {as} gE L". 3-H m-IE]IEIE‘IIE3III-mIn ._r4I:- ._F1H .._“—m__E-———E_— 5-“ LilI—r-u. I—Lame “4







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