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ACCA F3 Interest Cover Ratio

The following information is available for the year ended 31 October 2012:

Revenue	930,000
Cost of Sales	800,000
Gross Profit	130,000
Expenses	10,000
Financing Cost	60,000
Profit Before Tax	60,000

Suggested solutions:

Profit Before Tax	60,000
Add Financing Cost	60,000
Profit Before Interest and Tax	120,000
divided by Financing Cost (Interest)	60,000
Interest Cover Ratio	2

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