Answer:
1. TIE ratio = EBIT / Interest expense
EBIT = [ (Annual sales x profit margin) / (1 - tax rate) ] + Amount of debt x interest rate
= [ ($2,880,000 x 3%) / (1 - 0.30) ] + $800,000 x 8%
= 187428.57143
= $187,428.57
TIE ratio = $187,428.57 / ($800,000 x 8%)
TIE ratio = $187,428.57 / $64,000
TIE ratio = 2.92857
TIE ratio = 2.93
2. ROIC = [ EBIT x (1 - tax rate) ] / (Amount of debt + common stock)
= [$187428.57 x (1 - 0.30) ] / ($800,000 + $600,000)
= 0.093714285
= 9.37%
Answer:
The statement is true
Explanation:
The Marketing department of any firm has to analyze the external economic conditions (such as inflation rate, unemployment rate, GDP growth, economic sector growh), and also, social conditions such as consumer preferences. This is because the firm cannot market itself in ways that are not compatible with external conditions.
The Marketing professionals also have to take into account competitors, both existing and potential, because there is a limited percentage of market share that each competing firm can have, and the goal of marketing is to increase the firm's marketshire in respect to the other firms.
Answer:
Ms. Fresh loss will be $800 and Basis in new shares is $3,950
Explanation:
Her Loss on sale of stock would be computed as:
Loss = Sale Value - Purchase price
= $4,800 - $5,600
= ($800)
As she repurchased the IBIS stock within the expiry of 30 days, she is not allowed to deduct the LTCL (Long Term Capital Gain ) from gain. So, LTCL will be $0.
The basis in new shares is computed as:
Basis = Previous loss + Price paid
= $800 + $3,150
= $3,950
Finished goods consist of completed unsold goods which have not been sold to customers.
<h3>What is Finished goods?</h3>
Finished goods refer to completed goods or product that have pass through all the manufacturing process and completed they but have not be sold to the intending consumers.
They are completed processed products.
Therefore, Finished goods consist of completed unsold goods which have not been sold to customers.
Learn more about finished goods from the link below.
brainly.com/question/1763667
Answer:
a. $749,000.
Explanation:
The computation of the gross profit is shown below:
Gross profit = Sales Revenues for the period - Cost of Goods Sold for the period
= $1,324,000 - $575,000
= $749,000
It is shown in the income statement
We simply deduct the cost of goods sold from the sales revenue so that the gross profit can come
All other information which is given is not relevant. Hence, ignored it
