Answer:
C. 4.00
Explanation:
The interest coverage ratio is the same as times interest earned.
It is a the financial ratio that shows how many times over the income or earnings before interest and tax can be used to pay the interest payable in the same period.
Hence, Interest coverage
= Earnings before interest and taxes (EBIT) / Interest expense
EBIT = $580,000 - $350,000 - $45,000 - $90,000 -$15,000
= $80,000
The company's interest coverage ratio is
= $80,000/$20,000
= 4.00
A change from straight-line depreciation to double-declining-balance depreciation would be reported as a restatement of the prior period statements only.
The term depreciation refers to an accounting technique used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of an asset's value has been used. It allows companies to generate income from the assets they own by making payments over a period of time.
Depreciation expense is apportioned to charge a reasonable portion of the depreciation amount for each accounting period over the expected useful life of the asset. Depreciation includes the depreciation of assets with a predetermined useful life.
Learn more about depreciation here:brainly.com/question/1203926
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Answer and Explanation:
Earnings per Share, EPS = <u>Net Income dividend of preferred stock</u>
Number of stock outstanding
EPS depends on the earnings and its dilution due to increase in preferred stock also it depends on the net income earned
When EPS is higher than analyst prediction,
this may be due to increase in the net income
or
payback of common stock or preferred stock
thereby leading to reduction in the number of stock outstanding
When EPS is lower than analyst prediction
this would be due to reduction in the net income
or
increase of stock or preferred stock due to fresh issue
Insurance against issues that could lead to reduction on income and inrease in the activities that will lead to net income increase can help meet or surpass analyst prediction
Answer:
c. $1,900
Explanation:
As for the information provided, we have:
Retained Earnings opening balance = $2,500
Current year loss = $200
Balance of retained earnings after this = $2,500 - $200 = $2,300
Now, dividends are provided which shall be paid from retained earnings only.
Cash dividends are the one paid in cash.
Stock dividends are the ones which are paid by issue extra shares from retained earnings.
Thus, both are deductible from retained earnings.
Therefore, closing balance of retained earnings = $2,300 - $200 - $200 = $1,900.
Answer:
c
Explanation:
most are home businesses you can write off many things on taxes and have less overhead (bills and rent )
