1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using
photoshop1234 [79]

Answer:

Good value, is the right answer.

Explanation:

The given blank will be filled by “good value” because when a restaurant charges or offer a value menu it means that it is just making a minimum profit in order to attract the customers. However, charging a lower price which makes minimum profit results in the good value pricing process. Additionally, good value pricing is a technique to increase their sales.

7 0
3 years ago
1. Determine whether the activity is either:
ExtremeBDS [4]

Answer:

1. Illegal

2. illegal: forbidden by law

8 0
3 years ago
Plss Help me with this!!!
Gelneren [198K]

Answer:

the money will spend for people who are struggling to survive

4 0
3 years ago
Which of the following statements about valuing a firm using the APV approach is most CORRECT A. The value of operations is calc
Alenkinab [10]

Answer:

D) The value of operations is calculated by discounting the horizon value, the tax shields, and the free cash flows before the horizon date at the unlevered cost of equity.

Explanation:

The adjusted present value method is very similar to the NPV method, but with some "adjustments". It determines the NPV of a project if it was financed solely with equity. Then it includes the tax benefits that could be obtained if the project was financed by debt. The benefits are basically lower taxes due to interest payments that reduce taxable income.

The APV  uses the company's WACC as the discount rate.

6 0
3 years ago
ohn and Lisa form a partnership to operate a restaurant. Lisa signs a two-year lease on a space for the restaurant without consu
ludmilkaskok [199]

Answer:

General Partnership

Explanation:

The legal concept of General Partnership obliges two or more signing partners -Lisa and John in this case- to share all assets, all liabilities, and to be responsible for all matters related to the business, regardless of who signs a contract, or contracts new debt, or acquires a new asset, and so on.

So under this legal concept, even if John did not sign the lease, he is still legally responsible for it.

5 0
2 years ago
Other questions:
  • Consider the expenditures listed below and classify each of the expenditures as a capital expenditure or a revenue expenditure r
    7·1 answer
  • Which of the following is TRUE regarding journal entries: a) There are always only two accounts affected b) The total amount deb
    7·1 answer
  • asley Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat s
    11·2 answers
  • According to entry-level analysis project (elap) statistics, what percentage of therapists are leaving the profession in the fir
    8·1 answer
  • Raiment Inc. manufactures sewing machines. In an issue of Homespun Comrade, Raiment purchases the bottom quarter ad space on thr
    11·1 answer
  • Tater and Pepper Corp. reported sales for 2018 of $43 million. Tater and Pepper listed $7.6 million of inventory on its balance
    10·1 answer
  • George and Dan's political consulting firm is losing money, but it is more than covering its variable costs. What is the most ac
    11·1 answer
  • Discuss the statement: ‘Silence is Golden’ in approximately a hundred 300 words, in
    11·1 answer
  • Can a person work as an agent for two different people with conflicting interests?
    15·1 answer
  • With the standard burger without a bun, the bottom bun items go on the _____ and the top bun items go on the ______
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!