Creditors are interested in the times interest earned ratio because they want to "<span>have adequate protection against a potential drop in earnings jeopardizing their interest payments".
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The times interest earned ratio is also known as interest coverage ratio, which measures the capacity of an association to pay its obligation commitments. The proportion is generally utilized by banks to discover whether an debt borrower can bear to assume any extra obligation. It might be figured as either EBIT or EBITDA divided by the aggregate interest which is payable.
Answer:
$68,475
Explanation:
Data provided
Sales in October = $249,000
Credit percentage = 55%
Following month percentage = 50%
The calculation of accounts receivable is shown below:-
Credit sales in October = $249,000 × 55%
= $136,950
Collection collected in October
= $136,950 × 50%
= $68,475
Therefore, for computing the collection collected in October we simply multiply the credit sales in October with following month percentage.
This assertion is accurate. A cash dividend or other cash payment to investors is approved by the board of directors.
<h3>Is the board of directors involved in the decision to distribute dividends?</h3>
Before a cash dividend is announced and later delivered to shareholders, a company's board of directors must determine whether to pay one and how much. The Board shall determine the amount of cash to be delivered to the Shareholders, both individually and collectively.
<h3>Dividends have been announced by the board of directors.</h3>
A company's interim dividend is the sum that the board of directors declares between two annual general meetings. Interim dividend is included in the definition of dividend under Section 2(35) of the Companies Act. It is at the board of directors' discretion to declare an interim dividend.
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Product marketers must decide what products will be offered (i.e., the breadth and depth of the product line ). The product line breadth is one of the four dimensions associated with a company's product mix.
