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Goshia [24]
3 years ago
12

A company's income before interest expense and income taxes is $350,000 and its interest expense is $100,000. Its times interest

earned ratio is:
Business
1 answer:
Elan Coil [88]3 years ago
7 0

Answer:

Times interest earned ratio is <u>3.5 times</u>.

Explanation:

The times interest earned (TIE) ratio refers to a measure of the ability of company to honor its debt obligation form the current income of the company. TIE is also refereed to as interest coverage ratio and it can be calculated using the following formula:

TIE = EBIT / Interest expense .......................... (1)

Where;

EBIT = Earnings before interest and taxes = $350,000

Interest expense = $100,000

Substituting the values into equation (1), we have:

TIE = $350,000 / $100,000 = 3.5 times

This indicates that the income of the company is <u>3.5 times</u> greater than its interest expense.

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Answer:

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Explanation:

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Fran buys 1,000 shares of stock issued by Miller Brewing. In turn, Miller uses the funds to buy new machinery for one of its bre
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3 years ago
If consideration is received before a contract is identified and the consideration is nonrefundable, revenue may be recognized i
Studentka2010 [4]

Answer: Any of these answer choice is correct.

Explanation:

You didn't put the options to the question. The options are:

• There is no remaining obligation to transactions goods.

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• Goods have been delivered.

• Any of these answer choice is correct.

When consideration has been received before a contract is identified and the consideration is nonrefundable, then the revenue may be recognized when:

• There is no remaining obligation to transactions goods.

• The contract has been terminated.

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3 0
3 years ago
Quinlan has ample E &amp; P to cover any distributions made during the year. One distribution made to a shareholder consists of
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Answer:

1.Quinlan distribution has realized a loss of

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2. The shareholder received property with a basis of $321,720

Explanation:

1.

When property is been said to be distributed to shareholders the amount of dividend equal to the fair value of the said property which is $321,720 on the date of the distribution. Therefore the amount of taxable dividend is $321,720 which is before the dividends received deduction.

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