To answer this item, we assume that the interest rate is simple, such that the yearly rate was only divided by 12 months in order to determine the rate per month. Hence, to answer this item, we simply have to multiply the given percent by 12.
rate of interest/year = (12)(0.85%) = 10.2%
Therefore, the answer is 10.2%.
Answer: $13,400
Explanation:
Current Assets are those that will be used up in a year and in this question are;
= Accounts Receivable + Inventory + Supplies + Prepaid rent + Cash
= 2,600 + 3,200 + 300 + 2,100 + 5,200
= $13,400
Answer:
times interest earned ratio = 4.21
Explanation:
times interest earned ratio = income before interest and taxes (EBIT) / interest expense
income before interest and taxes = $320,000
interest expense = $60,000 + $16,000 = $76,000
times interest earned ratio = $320,000 / $76,000 = 4.21