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3 years ago

When a times-interest-earned ratio is 8.5, this means that the firm:?

1 answer:

6 0

Answer: This means that income is 8.5 times greater than his annual interest expense. In other words, it can afford to pay additional interest expenses.

You might be interested in

Bonds that are backed solely by the general credit of the corporation issuing them are called _______ bonds.

babymother [125]

Unsecured bonds, these bonds are also called debenture bonds.
I hope this helps.

3 0

3 years ago

These items are taken from the financial statements of Coronado Industries at December 31, 2017. Buildings $105,800 Accounts rec

swat32

Answer:

Assets: Liabilities:

Current Assets Current Liabilities

Cash 11,840 Accounts payable 9,500

Accounts receivable 12,600 Notes payable(current) 13,600

Prepaid insurance 3,200 Interest payable 3,600

Total current assets: 27,640 Total Current Liab 26,700

Fixed assets: Long-term Liabilities:

Buildings (net) 60,200 Note Payable: 80,000

Equipment (net) 63,680 Total Liabilities 106,700

Land 61,200 Equity:

total fixed assets: 185,080 Common stock 60,000

RE 46,020

Total Equity 106,020

Total Assets: 212,720‬ Total Liab + E 212,720

Explanation:

for RE we need to calculate the net income

income:

Service revenue 14,700

Insurance expense ( 780 )

Depreciation expense ( 5,300 )

Interest expense ( 2,600 )

Net income: 6,020

RE 40,000 + 6,020 = 46,020

for note payable we split the current and long term portion

93,600 - 13,600 = 80,000 long term debt

te rest is self-explanatory

8 0

3 years ago

Which of the following sentences uses the term ration correctly?

lisabon 2012 [21]

Answer:

The last one.

We had to ration the food to make it last the whole week.

Explanation:

Look up the meaning of ration and it'll make sense.

4 0

2 years ago

Use the indirect pattern when you need to soften or delay bad news until after an explanation is given. Understanding the four c

Trava [24]

Answer:

The correct answer is letter "B": Understanding.

Explanation:

While composing a text, the understanding buffering technique is helpful to show the reader the writer is concerned about what is being exposed. The buffering must provide a smooth transition to the explanation of the text. Thus, it must be written the most accurate possible.

5 0

3 years ago

For each item listed below, indicate in the space to the right whether the item would be considered a product cost or a period c

Katena32 [7]

Answer:

1. Factory supervisory salaries Production Cost Factory Overhead

2. Sales commissions Period Cost Selling expense

3. Income tax expense Period Cost tax expense

4. Indirect materials used Production Cost Factory Overhead

5. Indirect labor Production Cost Factory Overhead

6. Office salaries expense Period Cost Administrative expense

7. Property taxes on factory building Production Cost Factory Overhead

8. Sales manager's salary Period Cost Selling expense

9. Factory wages expense Production Cost Direct Labor

10. Direct materials used Production Cost Direct Materials

Explanation:

A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets

Period cost goes straight to expense account

While

Production Cost do capitalizes through Inventory and later recognize as cost of goods sold.

3 0

3 years ago