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svlad2 [7]
2 years ago
14

In the current year, Pringle Company reported Sales of $ 1,420,000 , Interest Expense of $ 12,000 , Income Tax Expense of $ 13,0

00 , and Net Income of $ 52,000 . What is Pringle's times interest earned ratio?
Business
2 answers:
mash [69]2 years ago
8 0

In the current year, Pringle Company reported Sales of $ 1,420,000 , Interest Expense of $ 12,000 , Income Tax Expense of $ 13,000 , and Net Income of $ 52,000 .

If we are single and a wage earner with an annual salary of $45,000, your federal income tax liability will be approximately $4700. Social security and medicare tax will be approximately $3,400.

A higher times interest earned ratio is favorable because it means that the company presents less of a risk to investors and creditors in terms of solvency. From an investor or creditor's perspective an organization that has a times interest earned ratio greater than 2.5 is considered an acceptable risk.

Learn more about Pringle Company here

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yKpoI14uk [10]2 years ago
7 0

Times interest earned ratio = earnings before interest and taxes/interest expense

- Earnings before interest and taxes = Net income + interest expense + tax expense

Earnings before interest and taxes = 52,000 + 12,000 + 13,000 = $77,000

- interest expense = $12,000

Therefore, the Times interest earned ratio = earnings before interest and taxes/interest expense

Times interest earned ratio = 77,000 / 12,000

Times interest earned ratio = 6.42

The lower the interest coverage ratio, the more the business enterprise's debt and the opportunity of financial ruin. Intuitively, a decrease ratio suggests that much less running earnings are to be had to meet hobby bills and that the company is extra prone to unstable interest costs

Typically, a hobby insurance ratio of a minimum of two is taken into consideration as the minimum suitable quantity for an agency that has strong, constant sales. In contrast, an insurance ratio below one suggests a corporation cannot meet its cutting-edge hobby payment responsibilities and, therefore, isn't in top monetary fitness.

Learn more about interest ratio here:

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Positive Messages and the Writing Process
vlada-n [284]

Answer: Refer to Explanation

Explanation:

1. a. Sales pitches, requests for favors - Persuasive.

When writing a Sales Pitch or Request for Favors Message, one must try to convince the intended receiver to buy the good being sold or to be willing to grant the favor requested. For this reason, the tone has to be persuasive.

b. Replies, goodwill messages, direct claims - Positive

These types of messages have to have a positive tone because they should come across in a friendly way so that the receiver may accept it as such.

c. Bad news, refusals - Negative

These are negative messages and as such should have a negative and indirect tone so that the receiver may understand the gravity of the message.

2. a. Make a list of points to cover.

d. Collect information.

e. Compose the first draft

The 3-x-3 writing process is a method of writing used to encourage a good writing flow.

It is divided into 3 stages being, <em>Prewriting, Writing</em> and <em>Revising</em>.

During Prewriting, one must determine why the are writing as well as who the message is intended for. Gilberto has done this already so the next step is the Writing stage.

The Writing stage includes, Making a list of points to cover so that the writing may be orderly and have the relevant information. It also includes researching where you collect information for the message to be written. And then finally composing the first draft which can then be scrutinized in the next stage.

3. Messages delivered through business letters are less likely to reach <u>unintended recipients </u>than messages delivered through <u>e-mail</u>.

Thus, business letters are more <u>confidential</u>.

Messages through Business letters have the intended recipients stated and usually get to the intended recipient as a result. Emails can sometimes be mixed up.

That fact means that business letters can carry more sensitive information and as such are more confidential.

6 0
3 years ago
After two of Mary's colleagues were laid off from their jobs for no specific reason, Mary started looking for a better job. In t
Brilliant_brown [7]

Answer: Safety needs

Explanation:

 According to the question, the given scenario best describe about the Mary's safety needs. The safety needs is basically refers to the personal security and the protection according to the needs in the Maslow's hierarchy.

It is known as one of the physiological factor that is required  for the human survival and it includes financial security, health and the medical security and the personal security.

Therefore, Safety needs is the correct answer.

3 0
3 years ago
Bramble Corp. reported the following year-end information: beginning work in process inventory, $270000; cost of goods manufactu
docker41 [41]

Answer:

The correct answer is: Cost of goods sold=$844000

Explanation:

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

Cost of goods manufactured= production during the period

COGS= 332000+866000-354000=$844000

8 0
3 years ago
Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is rea
ElenaW [278]

Answer: B. Jean

Explanation:

Having Absolute Advantage in the production of a good means that you can produce more of that good given the same resources or at least the same Quantity as others given lower resources.

From the scenario above therefore, Jean has the Absolute Advantage in producing Cakes as Jean can bake 12 cakes in an hour while Vincent can only bake 10.

6 0
3 years ago
Apt Adapt Inc. is formed to coordinate the design and delivery of projects and products to help communities cope with the effect
natali 33 [55]

Answer:

c) a benefit corporation.

Explanation:

A benefits corporation is the corporation that creates a positive impact on the society and its well being. The directors and the officers of this corporation would operate the business with the similar authority and behavior as done in the traditional corporation but the decision impact affect not only the shareholders but also the employees, customers etc

So as per the given situation, the correct option is c.

6 0
3 years ago
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