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What is the number of times interest earned for a hotel that had a gross operating...

What is the number of times interest earned for a hotel that had a gross operating profit of $21,150 per available room? The hotel had the following fixed charges on a per available room basis: management fees $1,803, rent $2,404, property taxes $1,482, insurance $256, interest $4,621, depreciation and amortization $3,980, and other fixed charges $726.

Round your answer to two decimal points.

# of time interest earned = ___ times

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Answer #1


Solution: Times interest expense Operating in come/interest expense | 4.58 times 21150/4621

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