Answer:
The correct answer is letter "A": The EBITDA coverage ratio increases.
Explanation:
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) ratio is an accounting indicator that measures the profitability of a company. It is calculated by subtracting the costs of goods sold and administrative expenses from the firm's income. The EBITDA is typically used to value the capacity for generating benefits of an entity considering only its productive activity because it indicates the returns obtained from the direct exploitation of the business.
Therefore, <em>if the EBITDA of a firm increases it is because its financial position has possibly increased.</em>
Answer:
D. customer service
Explanation:
Erica has kept on doing business with Abroad Standard, Inc. on a consistent basis which shows that she has overtime, gained satisfactory levels of dealings and thus, kept dealing with the said company. Customer service is thus, not one of the environmental forces that ASI needs to be mindful of with regard to the use of technology.
Answer:
$14,760 million
Explanation:
The computation of the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.
= $17,400 + $0 - $30 million - $2,610 million
= $14,760 million
Simply we deduct the changes in net working capital and net capital expenditure from the EBIT (1 - tax rate) so that the accurate value can come.
Answer:
e. any risk that affects a large number of assets.
Explanation:
The systematic risk is the risk which is involved in the whole market or part of the market.
It is also known as non-diversifiable risk or market risk as it affects the overall market not a single stock or market
As it is a market risk so It cannot be avoided as it is unpredictable.
Thus all other options are wrong
Answer: $38,000
Explanation:
Given that,
Company's balance sheet shows that,
Cash = $26,000
Accounts receivable = $32,000
Equipment = $54,000
Equity = $74,000
Liabilities = Cash + Accounts receivable + Equipment - Equity
= $26,000 + $32,000 + $54,000 - $74,000
= $38,000
Therefore, the amount of liabilities is $38,000.
