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kvasek [131]
3 years ago
8

For the most recent year, Camargo, Inc., had sales of $546,000, cost of goods sold of $244,410, depreciation expense of $61,900,

and additions to retained earnings of $74,300. The firm currently has 21,500 shares of common stock outstanding and the previous year’s dividends per share were $1.25.
Assuming a 23 % income tax rate, what was the times interest earned ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
weqwewe [10]3 years ago
3 0

Answer:

Explanation:

As we know that time interest earned ratio = Income before interest and taxes / interest expense.

Sales                                                                                           = 546000

less: cost of goods sold                                                            =  (<u>244410</u>)

            Gross profit                                                                       301590

Less: <u>expenses</u>

          Depreciation expense                                                      =( <u>61900   </u>)    

         Profit before interest and taxes                                         239690

Less: tax

      (239690 * 23%)                                                                =   (<u>55128</u>)            

                         Profit                                                                   184562

Profit - Retained earning Addition  = Interest

      184562 - 74300 = 110262.

Interest earned ratio = 239690 / 110262 = 2.17 times  

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8 0
2 years ago
Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine ho
Talja [164]

Answer:

Beech Manufacturing

The utilities flexible budget for July is:

= $1,225

Explanation:

a) Data and Calculations:

Utility rate per machine hour = $0.35

                                              Standard      Deluxe      Total

Predicted production                1,100             770      1,870

Expected machine hours        1,650          3,080     4,730

Units produced                       1,200             850     2,050

Standard machine hour/unit      1.5                 2

Budgeted machine hours

(flexible budget)                    1,800           1,700     3,500

Actual machine hours used                                    3,400

Utilities Static Budget = $1,655.50 (4,730 * $0.35)

Utilities Flexible Budget = $1,225 (3,500 * $0.35)

Utilities Actual Budget = $1,190 (3,400 * $0.35)

6 0
2 years ago
The _____ quality attributes are embedded in the total product, that is, the physical or core product and all the additional fea
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6 0
3 years ago
A business pays weekly salaries of $30,000 on Friday for a five-day week ending on that day. The adjusting entry necessary at th
algol [13]

Answer:

debit Salaries and Wages Expense, $24,000; credit Salaries and Wages Payable, $24,000.

Explanation:

The journal entry is shown below:

Salaries and Wages Expense A/c Dr $24,000

   To Salaries and Wages Payable $24,000

(Being salary and wages is adjusted)

The computation is shown below:

Five day salary = $30,000

Per day salary = $30,000 ÷ 5 days = $6,000

Now Monday to Thursday salary i.e 4 days salary = $6,000 × 4 days = $24,000

3 0
3 years ago
For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25, and the unit selling price
NeTakaya

Answer:

1. Break even point in units = 2,400 units

2. Sales required = 6,400 units

3. Operating income = $140,000

Explanation:

Given:

Fixed costs = $60,000

Variable cost =$25 per unit

Selling price = $50 per unit

Computation:

1. Break-even point in units of sales.

Contribution per unit = sales - VC

Contribution per unit = $50 - $25

Contribution per unit = $25

Break even point in units = Fixed costs / Contribution per unit

Break even point in units = $60,000 / $25

Break even point in units = 2400 units

2. Unit sales required to realize operating income = $100,000

Sales required = (Fixed costs + Operating income) / Contribution per unit

Sales required = ($60,000 + $100,000) / $25

Sales required = 6400 units

3. Operating income if sales total = $400,000

Contribution margin = [$25/ $50]100 = 50%

Operating income = Contribution margin - Fixed costs

Operating income = ($400,000 × 50%) - $60,000

Operating income = $140,000

5 0
3 years ago
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