Answered: Assume that debt service expenditures…

Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million. Calculate the Debt Service/ Revenue Ratio. Is the ratio favorable?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume that debt service expenditures are $12.6 million and "own source" revenues are $84 million. Calculate the Debt Service/ Revenue Ratio. Is the ratio favorable?

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