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iVinArrow [24]
3 years ago
6

The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50

,000 Income tax expense 80,000 Net income 240,000 Compute the times interest earned ratio, rounded to the nearest decimal. 4.8 6.4 7.4 20.0
Business
1 answer:
Lelu [443]3 years ago
6 0

Answer:

Times interest earned (TIE) = 7.4 times

Explanation:

The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,

Times Interest Earned (TIE)  =  EBIT / Total Interest expense

Where,

  • EBIT is the earnings of the company before interest and tax

To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:

EBIT = Net income + tax + interest expense

EBIT = 240000 + 80000 + 50000

EBIT = $370000

Times interest earned (TIE) = 370000 / 50000

Times interest earned (TIE) = 7.4 times

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Depreciation: Multiple Choice
Whitepunk [10]

Answer:

4. Estimates the decrease in the value of capital goods due to wear and tear over the year.

Explanation:

In accounting terms and in the business world, depreciation is defined as the systematic loss or reduction in value of a fixed asset or capital goods over time due to wear and tear. It is used in estimating the useful life or life expectancy of the asset. Examples of those fixed assets include, buildings, furniture, tractors, etc.

8 0
2 years ago
Martin puts his weekly paycheck into his checking account. In which column should he write the value of his paycheck?
deff fn [24]

Answer

a. Deposits

Explanation

A checking account is a bank account where members can withdraw and deposit money with ease of access. It is mostly used for bill payments and for making personal financial transactions .A checking account allows for check deposits and debit card transactions


6 0
3 years ago
Read 2 more answers
Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the follow
AlladinOne [14]

Answer:

Under NASAA's Statement of Policy on Dishonest or Unethical Business Practices of Broker/Dealers and Agents, which of the following is NOT considered when determining excessive trading in a client's account:

C) Length of association with the agent.

Explanation:

  • NASAA stands for The North American Securities Administrators Association that ensure the safety of the investor.
  • The option a, b and d are not correct as the Under the NASAA's statement of policy of dishonest or unethical business practices of broker/dealers and agents, investment objectives of the client, financial status of the client as well as the character of the account are considered.
  • The option c is correct as length of association with the agent is not the concern of the NASAA so it is taken into the consideration.

3 0
3 years ago
Assume that the demand curve for a certain good is a vertical line. This vertical demand curve illustrates the idea that:
ladessa [460]

Answer:

e.people will not change the quantity of the good when the price of the good is changed.

Explanation:

When the demand curve for a good is vertical, it indicates that the demand for the good is perfectly inelastic ; a change in price has no effect on the quantity demanded.

Goods with perfect inelasticity usually have no or little close subsituites.

I hope my answer helps you

6 0
2 years ago
The key to managing relationships to achieve customer success is __________________?
shtirl [24]

The key to managing relationships to achieve customer success is <u>to </u><u>coordinate your unique talents</u><u> with the</u><u> success criteria</u><u> of your clients.</u>

<h3>What is customer success?</h3>

Customer Success is a long-term, professionally managed, scientifically developed business strategy for increasing customer and business sustainable demonstrated profitability.

A solution to the fundamental problems of customer portfolio development, retention, and expansion is what the developing role is all about. Customer Success is actually the merging of the roles and responsibilities of marketing, sales, professional services, training, and support into a new career. An in-depth understanding of the clients, practical skills in the product being sold, and broad domain knowledge are the three fundamental components of this rising profession.

Sustainable business profitability and growth are the ultimate strategic objectives of the Customer Success function. Making your clients as profitable and productive as you can is the strategy.

Thus,<u> </u><u>Option c)</u><u> To align your distinctive competencies with customers' success factors </u>is the correct answer.

For more information on Customer Success, refer to the given link:

brainly.com/question/28218612

#SPJ4

4 0
1 year ago
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