Answer:
Option c. 5.25 times is the correct answer.
Explanation:
Below is the calculation:
Income before income tax = $420000
Income tax expenses = 120000 dollars
Net income = $300000
Interest expense = $80000
Interest earned ratio = Earning Before Interest and Taxes / Interest Expenses
Interest earned ratio = 420000 / 80000
Interest earned ratio = 5.25 times
Option c. 5.25 times is the correct answer.
Answer: b. funds provided by borrowing.
c. funds provided by the sale of assets.
d. funds provided by issuing common or preferred stock.
Explanation:
The financial statement consists of two main components which are the balance sheet and the income statement. The balance sheet simoly shows the financial standing of a firm.
Of the options, those that can found in the balance sheet are:
b. funds provided by borrowing.
c. funds provided by the sale of assets.
d. funds provided by issuing common or preferred stock.
Answer:
$62,400
Explanation:
Assets are Economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.
Assets include the following Amounts:
Cash from Bank Note $20,000
Cash from Stock Issues $40,000
Supplies Inventory $4,000
Payment for Supplies ($1,600)
Total Available Assets $62,400
Answer:
True
Explanation:
When the price increases, more people will be unwilling to buy the product. However, simply lowering the price will not necessarily gain a large number of new customers.
