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yan [13]
3 years ago
12

Ziebart Corp.'s EBITDA last year was $350,000 ( = EBIT + depreciation + amortization), its interest charges were $9,500, it had

to repay $26,000 of long-term debt, and it had to make a payment of $17,400 under a long-term lease. The firm had no amortization charges. What was the EBITDA coverage ratio?
Business
1 answer:
beks73 [17]3 years ago
7 0

Answer:

EBITDA Coverage Ratio = 6.95

Explanation:

Earnings before interest, taxes, depreciation and amortization coverage ratio measures the company's ability to pay the debt, interest, and lease with the net income before interest and taxes. The formula of EBITDA coverage ratio is as follows:

EBITDA Coverage Ratio = \frac{EBITDA + Lease Payments}{Interest Payments + Principal Repayments + Lease Payments}

Given,

EBITDA = EBIT + depreciation + amortization = $350,000

Long-term lease payments = $17,400

Interest expenses = $9,500

Repayment of debt = $26,000

Therefore,

EBITDA Coverage Ratio = \frac{350,000 + 17,400}{9,500 + 26,000 + 17,400}

or, EBITDA Coverage Ratio = \frac{367,400}{52,900}

Hence, EBITDA Coverage Ratio = 6.95

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netineya [11]

Answer:

Delegation of control

Explanation:

Active Directory (AD) is a product offered by Microsoft that is designed for managing computers and related devices within an intranet. It is part of a larger operating system called Windows Server used in both intranet and internet based servers.

4 0
3 years ago
Explain how each of the following events changes the demand for or supply of jeans. A. Upper A new technology becomes available
Dima020 [189]

Answer:

A. Where a new technology that reduces the time it takes to manufacture a pair of jeans is available, it will leads to a change in supply. For example if a new machine is invented which decreases output per unit of time, there will decrease in the supply of a pair of jeans.

B. Where the price of the cloth (denim) used to make jeans rises, it will affect the change in the supply of jeans because an increase in the price of the raw materials used (denim) in making jeans, it will lead to a reduction in supply.

C. Where Jeans go out of fashion, it will cause a change in demand or supply because taste changes over time. For example, if jeans go out of fashion there would be a decrease in demand and supply for it.

D. Where the price of a pair of jeans falls, it will not affect the change in demand or supply of the jeans because a change in the price of a commodity is not a factor that causes a change in demand or supply.

E. Where the wage rate paid to garment workers falls, it will affect the change in the supply of jeans but will not affect the change in demand for jeans.

F. Where many jeans producers go out of business, it will affect the change in the supply of jeans but will not affect the change in demand for jeans.

H. Where people's incomes increase, it will affect the change in demand that leads to increase in demand for a pair of jeans

Explanation:

Causes of changes in demand and supply

Demand refers to the quantity of a commodity which consumers are willing and able to purchase at a particular price and at a particular period of time.

The Law of demand sates that 1) the higher the price of a commodity, the lower the quantity demanded, and  2) the lower the price of a commodity, the higher the quantity demanded.

The Change in demand (shift in the demand curve): There is a change in demand if the demand curve shifts to an entirely new position. A change in demand is determined by the factors affecting demand, other than price in a commodity. Factors affecting change in demand include changes in taste, fashion, population size, and income. 

The Supply of a commodity is the quantity of that commodity which sellers are willing and able to offer for sale at a particular price, at a particular period of time.

The Law of supply states that the higher the price of a commodity, the higher the quantity supplied while the lower the price of a commodity, the lower the quantity supplied.

The Change in supply (shift in the supply curve): There is a change in supply if the supply curve shifts to an entirely new position. A change in supply is determined by the factors affecting supply, other than price in a commodity. Factors affecting supply include Technological development, weather and climate, government policies/effects of subsidies and taxation, a new source of raw materials. A change in supply could be a decrease or increase in supply of a commodity. 

8 0
3 years ago
Infinity Corporation purchased equipment with a 10-year useful life and zero residual value for $10,000. At the end of the fifth
sesenic [268]

Answer:

a capital gain of $1,000.

Explanation:

Given,

The cost price of Equipment = $10,000

Useful life of the equipment = 10 years

Residual value = $0

Depreciation (Straight-line method) = Cost price/useful life

Depreciation (Straight-line method) = $10,000/10 = $1,000

Since, it is a straight line method, the depreciation will remain same each year. Therefore, at the end of the fifth year, the depreciation of equipment = $1,000 x 5 = $5,000

At the end of the fifth year,

The book value of the equipment= Equipment - Accumulate depreciation= $(10,000 - 5,000) = $5,000

If the company sales the equipment after the end of the fifth year,

there will be a capital gain.

Capital Gain of equipment = Sales price of equipment - book value of equipment

Capital Gain of equipment = $6,000 - 5,000 = $1,000. The journal entry will be -

Cash/Bank                              Debit       $6,000

Accumulated Depreciation   Debit       $5,000

Gain on sale of equipment                  Credit       $1,000

Equipment                                            Credit      $10,000

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The vice president of operations of your company, which makes packaged foods, is thinking about benchmarking manufacturing proce
disa [49]

Answer:

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Explanation:

Benchmarking is an analysis that companies make of the best performer in their industries. The objective is to compare the techniques and processes to the top entity to find out which practices can be implemented in the firms to improve their efficiency and effectiveness.

<em>For the comparison to be accurate, the firm must make an unbiased study of its current method of operations. Only then, the firm can review which problems it has in common with the top-industry company and how this corporation overcame the issues.</em>

4 0
3 years ago
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Vilka [71]

Answer:

Video call or teleconferencing

Explanation:

This is communication between two parties in different places. They get to see eachother and he gets to fully immerse his boss in the news he wants to provide

5 0
3 years ago
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