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svetoff [14.1K]
3 years ago
6

The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are

$1.75 million, its average tax rate is 30%, and its net profit margin on sales is 8%. If the company does not maintain a TIE ratio of at least 3 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
Vinil7 [7]3 years ago
3 0

Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha,  we need to do the following calculations

The interest amount  is

= $350,000 × 0.08

= $28,000

The net profit is

= $1,750,000 × 8%

= $140,000

The EBIT is

= Profit before tax + interest expense

= $140,000 ÷ (1 - 0.30) + $28,000

= $200,000 + $28,000

= $228,000

And, the interest expense is $28,000

So, the TIE ratio is

= $228,000 ÷ $28,000

= 8.14 times

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Name the non-partisan organization that has set the rules for U.S. presidential and
Oksi-84 [34.3K]

Answer:

The non-partisan organization that has set the rules for U.S. presidential and  vice presidential debates since 1987 is discussed below in details.

Explanation:

A non-partisan system is an arrangement of administration or organizations such that general and intermittent elections take place without relating to political parties. there are two types of Non-partisan organizations: De facto and De jure.

The commission of presidential debates was organized in the year 1987 to assure that the debates, as a constant part of every general election. The commission of presidential debate advocate and present debates for the United States presidential and vice-presidential candidate.

6 0
3 years ago
Who was your most difficult customer?
jeka57 [31]

Answer: when I was working at AXA as a Financial Advisor, my most difficult clients or customers are the SKEPTICAL CUSTOMERS ( their ask much questions and always doubt everything you say).

one of the days I never meet a clients need, was the day a client wants to liquidate his money market investment ( it's a fixed account where clients deposit money and expect good returns or interest when ever they want to cash out the money). The clients wants his money immediately, but at that moment we had some Network issue, and claims has to be posted before liquidation can be done. I called the head office to inform them the issue on ground, as they work to rectify it, I took the client to our lounge room, I bought him ice cream and cake, we ate together and I cracked some jokes, we laughed together as we wait for the Network issue to be resolved,

Customers satisfaction is actually difficult when it comes to large number, I always have a note book, to write down appointment and discussions with customers, so it will be easy for me to satisfy everyone according to what we have discussed earlier. When I have much work to do per hour, I have to inform them on how each issue will be treated accordingly, as their patiently wait.

The last time I apologized to someone was few hours ago, I mistakenly stepped on someone's foot in a public transport, I just have to apologize immediately.

Explanation:

6 0
3 years ago
Kyle's checking account requires that he maintain a minimum balance of $3000 to avoid a monthly service fee, and his balance at
Crank
C. No, because his lowest balance so far this month has been $2989.30 

<span>Start with 3202.93 and add 436.37 = 3639.30 </span>

<span>Then take 650 away (3639.30 - 650 = 2989.20) </span>

<span>It says that he must maintain a minimum of 3000 so when the check cleared he went below this amount. (just verified on apex)
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7 0
3 years ago
Read 2 more answers
A. Find the FV of $1,000 invested to earn 10% annually 5 years from now. Answer this question by using a math formula and also b
vekshin1

Answer:

$1,610.51 (in both calculation)

Explanation:

1. Using Math formula,

We know, Future value, FV = PV × (1 + i)^{n}

Given,

Present Value, PV = $1,000

Interest, i = 10% = 0.10

Number of periods, n = 5 years

Putting the values in the formula, we can get,

Future value, FV = PV × (1 + i)^{n}

FV = $1,000 × (1 + 0.10)^{5}

or, FV = $1,000 × 1.61051

Therefore, FV = $1,610.51

2. Using excel formula,

See the image below:

We have to use present value as negative so that the result should be used as positive.

6 0
3 years ago
Bethany Link delivers parts for several local auto parts stores. She charges clients $2.60 per mile driven. She has determined t
SVETLANKA909090 [29]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

She charges clients $2.60 per mile driven. She has determined that if she drives 2,500 miles in a month, her average operating cost is $2.40 per mile. If Bethany drives 5,000 miles in a month, her average operating cost is $2.00 per mile.

1) To calculate the variable and fixed cost, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (10,000 - 6,000) / (5,000 - 2,500)= $1.6

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 10,000 - (1.6*5,000)= $2,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 6,000 - (1.6*2,500)= $2,000

2) Income statement:

Sales= 2,750*2.6= 7,150

Variable cost= 2,750*1.6= (4,400)

Contribution margin= 2,750

Fixed costs= (2,000)

Net operating income= 750

5 0
3 years ago
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