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yulyashka [42]
3 years ago
6

Which job category is likely to deal with primarily supply chains

Business
1 answer:
DiKsa [7]3 years ago
8 0
Supply Chain Management
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The expression, "there's no such thing as a free lunch" implies that:
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Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1,885,000. (1) Compute
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Answer:

(1) Park's times interest earned is 13.

(2) Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.

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(1) Compute its times interest earned.

The times interest earned, also known as the interest coverage ratio, is a coverage ratio that calculates the proportionate amount of income that can be used to cover future interest expenses.

The times interest earned can be computed as follows:

Times interest earned = Income before interest expense and income taxes / Interest expense = $1,885,000 / $145,000 = 13

Therefore, Park's times interest earned is 13.

(2) Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad.

Because the ratio reveals how many times a company could pay interest with its pre-tax income, greater ratios are clearly better than lower ratios.

Since Park’s times interest earned of 13 is greater than its competitor’s times interest earned of 4, it therefore implies that Park is in a BETTER position than its competitor to make interest payments if the economy turns bad.

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2 years ago
A robot manufacturing company in Southeast Asia undertakes a government project to produce multi-utility robots. It requires a s
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Evie is more likely to be involved in e-marketing career pathway

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