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Anuta_ua [19.1K]
3 years ago
14

Assume a company's Income Statement for Year 12 is as follows Year 12 in 000s Income Statement Data Net Revenues from Footwear S

ales Cost of Pairs Sold Warehouse Expenses Marketing Expenses Administrative Expenses Operating Profit (Loss) Interest Income (Expense) Pre-tax Profit (Loss) Income Taxes Net Profit (Loss) $580,000 350,000 45,000 90,000 15,000 80,000 (20,000) 60,000 18,000 $42.000 Based on the above income statement data and the formula for calculating the interest coverage ratio presented in the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ratio is
A. 29.0
B. 2.20
C. 4.00
D. 3.00
E. 2.10
Business
1 answer:
eimsori [14]3 years ago
6 0

Answer:

C. 4.00

Explanation:

The interest coverage ratio is the same as times interest earned.

It is a the financial ratio that shows how many times over the income or earnings before interest and tax can be used to pay the interest payable in the same period.

Hence, Interest coverage

= Earnings before interest and taxes (EBIT) / Interest expense

EBIT = $580,000 - $350,000 - $45,000 - $90,000 -$15,000

= $80,000

The company's interest coverage ratio is

= $80,000/$20,000

= 4.00

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Answer:

A

Explanation:

Any pattern particularly with audience involvement

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6 0
3 years ago
A recent survey was conducted to compare the cost of solar energy to the cost of gas or electric energy. Results of the survey r
RoseWind [281]

Answer:

option d) approximately 84%

Explanation:

Data provided in the question:

Mean, m = $92

Standard deviation, s = $13

Now,

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Z = \frac{79-92}{13}

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7 0
3 years ago
Meredith is a passive 30% member of the MNO LLC. She is not a managing member and she does not participate in any activities of
goldfiish [28.3K]

Answer

b.$0 SE tax; $90,000 NII tax.

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

7 0
3 years ago
In which of the following situations will the acting party be liable for the tort of negligence? Explain fully.
Eddi Din [679]

Answer:

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Negligence is defined as the 'tort whereby a duty of reasonable or standard care as defined by law is breached, causing damage or any conduct short of .'

In the above situation, Shanon was aware of the after-effects of the medication she took as her physician instructs her to not drive because she may feel drowsy. Despite this warning, her decision to drive to the store reflects her negligence i.e. 'intentional action that falls below the legal standard for preventing unreasonable damage or harm.' Thus, <u>option C</u> is the correct answer.

5 0
3 years ago
The town of Chester has an economy composed entirely of two equally sized food companies. Both company Q and company R produce p
ExtremeBDS [4]

Answer:

C) abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.

Explanation:

According to different theories about trade specialization, a company or even a country should specialize in producing only those products that they can make better than their competition, i.e. have a comparative or absolute advantage in their production.  

In this case, since Company R has a comparative advantage in the production of peanut butter, it should specialize in producing only that. In case they need jam, they should trade with Company Q in order to get some jam. Eventually Company Q  will only produce jam since they have a comparative advantage in jam production.

8 0
3 years ago
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