Question

net profit before interest tax =192000
10% long term borrowing=240000
interest coverage ratio=?
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Answer 1

Answer:

480000 ok anna is your answer

Answer 2

1.833 Times

Explanation: Interest Coverage Ratio= EBIT/Interest  ,[where EBIT is Earning before Interest and Tax].

Earnings before Tax= Net Profit after Tax + Tax Paid

                                 = ₹1,20,000*100/60

                                 = ₹2,00,000

Now,

EBIT = EBT + Interest Paid

        = ₹2,00,000 + 12%of ₹2000000

        = ₹4,40,000

So, ICR = EBIT/Interest

            = ₹4,40,000/₹2,40,000

            = 1.833

I am solving correctly your answer⏩⏩⏩♠♠♠