Question 69

Read the following table and answer question that follow:-


What is the approximate ratio of Interest and Depreciation expenses for the company A and those of  company X for both the years combined?

Solution

Interest and Depreciation expenses for the company A both the years combined = 62.4+62.4+40.8+38.6 = 204.2

Interest and Depreciation expenses for the company X both the years combined = 13.4 +13.2 + 9.6 +13  = 49.2

Ratio = $$204.2 : 49.2$$ = $$4.15:1$$

Option D is the closest.


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