Answer:
a. 36,000
Explanation:
Calculation to determine what February production in units is:
Sales for the month 30,000
Add Ending inventory 15,000
(50,000*0.3)
Less Beginning inventory (9,000)
(30,000*0.3)
February production in units 36,000 units
Therefore February production in units is: 36,000 units
Answer:
Classic Music, Inc.
C. 6.62 times
Explanation:
a) The times-interest-earned (TIE) ratio measures a company's ability to meet its debt obligations based on its current income. It is calculated as earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debts.
b) The EBIT is $437,000 (Net Income + Income Tax and Interest Expenses).
c) Therefore, the TIE is equal to 6.62 times ($437,000/$66,000).
Answer: c. $2.50
Explanation:
Using the Gordon Growth Model;
Price = Next Dividend / (required return - growth rate)
45.50 = (Dividend * (1 + 9%)) / ( 15% - 9%)
45.50 * 6% = 1.09 * Dividend
2.73 = 1.09 * Dividend
Dividend = 2.73/1.09
= $2.50