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During FY13, Small Bazar, a leading retail company has sold three of its prime properties for a sum of USD 24 Million. The same had a carrying value of USD 30 Million.
Analyst had considered the same as operating income and considered it to be part of operating expenses.
However, she realized her mistake and recorded the loss as non-operating loss. Which of the following ratio will not change despite the correction?
A) EBITDA Margins
B) Interest Coverage
C) PAT Margins
D) Gross Profit Margin
Suggested Answer: B
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7 comments · newest first
PA
Page
1 year ago
EBITDA Margins won't change, that's correct!
VI
Vivan
1 year ago
Surprised they initially recorded it wrong!
SA
Sabra
1 year ago
I thought operating income included all sales?
CE
Cecily
1 year ago
That loss being non-operating makes sense.
LI
Ligia
1 year ago
Small Bazar sold properties for $24M, carrying value was $30M.
LE
Lenna
1 year ago
Based on the information provided, I'd say the most likely issue is that there's no Identification Rule defined for Tomcat. That would prevent the connection from being detected.
EV
Evangelina
1 year ago
Okay, I've got this. The QA group is responsible for ensuring program changes adhere to standards, so I'm going to go with option A.