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Natalija [7]
3 years ago
11

Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest pay

ments if the economy turns bad?
Business
1 answer:
Amiraneli [1.4K]3 years ago
6 0

Answer:

In the first part of the question we calculate that Park's times interest earned ratio is $1885000 / $145000 = 13 times

if Park's competitor has a times earned ratio of 4, it means that Park is in a much better financial position to make interest payments.

The times interest earned ratio measures how many times a company can pay their interest expense with their current EBIT or operating revenue. The higher the ratio, the better since it shows a healthier financial position.

Neither park nor its competitor are currently at risk of not paying their debt, but what happens if something goes wrong and sales decrease or costs increase? Or everyone has to stay home for a while? Park can handle a bad economy better than its competitors.

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Barnes manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternati
FromTheMoon [43]

Answer:

It is more convenient to continue processing.

Explanation:

Giving the following information:

Barnes manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternatively, it can be further processed for $12,000 and converted into 12,000 units of Exceptional and 6,000 units of Premium. The selling price of Exceptional and Premium are $30 and $20, respectively.

We don't have the information regarding the costs of processing further. Therefore, we will base our analysis in sales.

Sell now= 22*20,000= $440,000

Continue processing= 12,000*30 + 6,000*20= $480,000

It is more convenient to continue processing.

3 0
3 years ago
Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared an aging of accounts receivabl
alisha [4.7K]

Answer:

the bad debt expense is $6,830

Explanation:

The computation of the bad debt expense is shown below:

= Estimated uncollectible amount + debit balance of allowance for doubtful accounts

= $6,300 + $530

= $6,830

Hence, the bad debt expense is $6,830

We simply added the above amount as it represent the bad debt amount

The same is to be considered  

6 0
3 years ago
what would you do if you were offered a promotion that you were not certain about accepting? What factors would you take into ac
Sati [7]

Answer:

Answer

Explanation:

I would most likely accept the promotion.

Several factors would influence my decision.

- The new scope of responsibilities

This will include all the additional risks and tasks that I will get by accepting the promotion. Taking new responsibilities might sound scary, and many people will be discouraged by this. But at some point, all great leaders are someone without any experience too. As long as we are open to criticism, we will adapt to our new responsibilities.

- the new pay raise

Economic gain usually comes with promotion. It will motivate me to do more for the company.

- The likelihood of me getting another promotion chance

Chances like this do not come often in our life. The fact that I'm offered a promotion means that the higher up has reviewed my previous work result and determine that I'm the best option for them. I would not let this chance go to waste.

3 0
3 years ago
Read 2 more answers
Transactions for the Monty Company, which provides welding services, for the month of June are presented below. June 1 Monthly i
Leona [35]

Answer:

<u>Transactions:</u>

1. June 1 Monthly invests $3, 910 cash in exchange for shares of common stock in a small welding business.

2. June 2 Purchases equipment on account for 340.

3. June 3 $760 cash is paid to landlord for June rent.

4. June 12 Bills P. Leonard $410 after completing welding work done on account.

<u>Journal Entries:</u>

1.

June 1              Dr.      Cr.

Investment   $3,910

Cash                          $3,910

2.

June 2              Dr.      Cr.

Equipment     $340

Account Payable       $340

3.

June 3                Dr.        Cr.

Rent Expense   $3,760

Cash                               $3,760

4.

June 12                                Dr.        Cr.

P. Leonard (Receivable)     $410

Welding Service Revenue              $410

6 0
2 years ago
Describe various ways that knowledge management systems could help firms with sales and marketing or with manufacturing and prod
german

Answer:

Please see explanation below.

Explanation:

Knowledge management system is a system that allows sales people have quick and right information about a company's value proposition without having to wait for feedback from team members or someone else in the company. An advantage of knowledge management system is the ability to train many employees remotely or places where they may be needed.

Various ways ways that knowledge management system could help sales and marketing.

•Getting sales people on the same page. A company's sales team should understand the value propositions of their firm and how such values distinct them from the competitors. Each sales member should be acquitted with the knowledge management system which provides an easily accessible place for the company's value proposition. It also means that the values should readily be known and understood by everyone and are able to apply them according to how situations demands.

• Allowing to refine and deliver a better training process. This explain that knowledge management system can assist in terms of tracking questions frequently asked by sales people , contents mostly assessed by them and activities often carried out by top sales person that bring about the best result. All the information gathered including possible answers and training contents can then be loaded into the knowledge management system to help train new hires.

• Helping to track valuable insights and information. Prospects and customers usually give useful feed back which can assist a sales team and sales representative handles future sales opportunities. It is not enough capturing these information on the knowledge management system, they should be properly organized and accessible for other team members to benefit .

• Making it easier for sales and marketing to help each other. An important part of marketing team's task is to understand the challenges faced by the target audience and the questions prospects commonly ask so as to create relevant contents for them and also upload them on the knowledge management system portal. Such information should be often accessed by the team and then take better advantage of it.

Other areas knowledge management system could help sales and marketing are assistance with sales trend, high level decisions with regards to product orders, price negotiations . etc

7 0
3 years ago
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