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rusak2 [61]
3 years ago
9

Emma's Electronics Incorporated has total assets of ​$63 million and total debt of ​$39 million. The company also has operating

profits of ​$23 million with interest expenses of ​$6 million
a. What is Ellie's debt ratio?

b. What is Ellie's times interest earned?

c. Based on the information above, would you recommend to Ellie's management that the firm is in a strong enough position to assume more debt and increase interest expense to $7 million.
Business
1 answer:
Annette [7]3 years ago
6 0

Answer:

(a) 62%

(b) 3.83 times

(c) Yes

Explanation:

(a) Ellie's debt ratio:

= Total Debt ÷ Total assets

= $39 million ÷ $63 million

= 0.62 or 62%

(b) Ellie's times interest earned ratio:

= Interest ÷ EBIT

= $23 million ÷ ​$6 million

= 3.83 times

(c) Yes, it has enough times interest ratio.

If Interest expenses increased to $7 Million, then

Company could easily raise more debt to finance additional funding needs.

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Answer:

The use of the bank's funds for this fundraiser would be justified when the bank's goal is to maximize profit by:

giving the bank public relations boost, thereby improving its public image.

Explanation:

The creation of publicity opportunities through this fundraiser enhances the bank's activities.  Awareness of its services is created through the sponsorship.  People perceive the bank as a charity-supporting organization, which cares for the welfare of the less-privileged.  The fundraiser creates huge goodwill.  Public relation is, therefore, critical in helping the bank to engage its diverse publics across various platforms, including the accruing intangible benefits that derivable from the seemingly unprofitable effort.

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3 years ago
A laser surgical tool has a cost basis of $100,000 and a five-year depreciable life. The estimated SV of the laser is $20,000 at
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Answer:

The annual depreciation under SL is $16000 per year.

Explanation:

The depreciation expense under Straight Line (SL) method remains constant throughout an asset's useful life. The depreciation under straight line method is calculated by calculating the value of the asset that is eligible for depreciation, which is its cost less the salvage value (SV) and dividing it by the asset's useful life.

The straight line depreciation per year = (Cost - SV) / estimated useful life

Annual depreciation under SL = (100000 - 20000) / 5   = $16000 per year

4 0
3 years ago
What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month? set all to zero ex
zubka84 [21]

What is the minimum monthly gross income you need to be able to afford the above and still save $100 a month set all to zero except $800-$999 medicare $100, internet $50, telephone $50. food $600.The amount paid to an employee in a month before taxes or other deductions is known as gross monthly income.

The amount is specified in both job offer letters and paychecks. Overtime, bonuses, and commissions are all possible sources of additional gross monthly income. Gross pay is related. Your gross income will also help you budget and figure out how much money you'll have to save for retirement.

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Explanation:

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The Operations Section Chief directs all responses and tactical actions to achieve the incident objectives.

<h3>What is Operations Section Chief ?</h3>

The Operations Section Chief, a member of the General Staff, is in charge of all operations directly related to the core mission. The Operations Section Chief initiates, supervises, and leads the execution of organizational elements in accordance with the Incident Action Plan.

The Operations Section Chief directs tactical incident activities to achieve incident objectives and oversees the implementation of the Incident Action Plan (IAP). 1. This role can be ordered as a stand-alone resource or as part of a National Incident Management System (NIMS) team (Incident Management Team).

The OSC1 works in the Operations functional area and reports to the Incident Commander (IC). The OSC1 performs duties corresponding with the Type 1 incident complexity and characteristics outlined in the Interagency Standards for Fire and Firefighting.

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