Answer:
8.14 times
Explanation:
The computation of the Time interest earned ratio is shown below:
As we know that
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for the year + Interest expense
But before tha, we need to do the following calculations
The interest amount is
= $350,000 × 0.08
= $28,000
The net profit is
= $1,750,000 × 8%
= $140,000
The EBIT is
= Profit before tax + interest expense
= $140,000 ÷ (1 - 0.30) + $28,000
= $200,000 + $28,000
= $228,000
And, the interest expense is $28,000
So, the TIE ratio is
= $228,000 ÷ $28,000
= 8.14 times
Answer:
The correct answer is letter "B": Internal customers.
Explanation:
Internal customers are not necessarily employees or customers who work inside the organizations, but they usually do. These people have a certain relationship with the firm and one need from another so their jobs can be done. In the case of employees, they rely on others' roles so their responsibilities can be performed.
When you pay off an installment loan early you will save money on interest.
The bank charges an interest rate on money that they loan out. When you pay the loan early you do not have to pay the interest on the money for the amount of time left on the loan.
Answer:
$4,775
Explanation:
Given that,
Allowance for Uncollectible Accounts = $1,700
Write off in Accounts receivable during the year = $875
Allowance for Uncollectible Accounts required = $5,600
Closing Allowance for Uncollectible Accounts:
= Allowance for Uncollectible Accounts - Write off in Accounts receivable during the year
= $1,700 - $875
= $825
Bad debt expense for 2022:
= Allowance for Uncollectible Accounts required - Closing Allowance for Uncollectible Accounts
= $5,600 - $825
= $4,775
Answer:
D) licensing
Explanation:
Licensing is when a company gives another company legal permission to manufacture it's own products in return for a specific payment. It can also apply to a service business like fast food or hotel(hospitality service).
