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Other Fields Homework Help Accounting Topic started by: Kwami on Dec 13, 2016



Title: The following comparison is presented for Max, Inc. to the industry averages:IndustryMax, ...
Post by: Kwami on Dec 13, 2016
The following comparison is presented for Max, Inc. to the industry averages:
   Industry
   Max, Inc.   Averages
   Debt ratio   36.6%   65.0%
   Coverage ratio   3.5   3.0
What conclusion can be drawn when comparing Max's coverage ratio to the industry average?
A) Max is able to cover its interest payments more times than the industry.
B) Max has a larger proportion of its assets financed by debt compared to the industry.
C) Max has a smaller proportion of its assets financed by debt compared to the industry.
D) Max must cover more interest payments than the industry average.


Title: Re: The following comparison is presented for Max, Inc. to the industry averages:IndustryMax, ...
Post by: hol23 on Dec 15, 2016
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Title: Re: The following comparison is presented for Max, Inc. to the industry averages:IndustryMax, ...
Post by: Kwami on Jan 29, 2017
This really helped