Answer: d.have adequate protection against a potential drop in earnings jeopardizing their interest payments
Explanation:
The Times Interest Earned Ratio is a measure that allows for the analysis of if a company can keep up it's debt payments.
It is calculated by dividing the Earnings before Interest and Tax by the Interest Expense of the debt.
The higher the number, the better because it means that they can keep up debt payments several times over.
As Debtors therefore, this figure is important because missing a debt payment is very bad for credit ratings and this matrix helps them realise if they can keep paying for debt even if their Earnings drop.
I got to think about this again. Come back later! X-322.22
The accounts and amounts that will be reported on the company's balance sheet as pension assets are:
1. Pension Plan Assets: The amount reported will be equal to the projected benefit obligation of the company.
2. Accrued Pension Benefit Liability: The amount reported will be equal to the difference between the projected benefit obligation and the pension plan assets.
The Pension Plan Assets account will be reported as the current market value of the pension plan assets.
The Accumulated Benefit Obligation account will be reported as the projected benefit obligation, which is the current value of the benefits that will be owed to employees in the future.
The difference between these two amounts is the company's net pension assets or liabilities.
For example, if the projected benefit obligation is $3 million and the pension plan assets are $2.5 million, the net pension assets would be reported as a liability of $0.5 million.
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Answer:
Rent assigned to preparation and setup cost pool is $714.84
Explanation:
Preparation and setup takes 1,500 square feet out of the total 6,400 square feet available,hence the factory rent assigned to preparation and setup from the total rent of $3,050 i calculated thus:
Preparation and setup assigned rent=total rent/total square feet*preparation and setup square feet
=$3050/6400*1500
=$714.84
That represents the rent amount attributable to preparation and setup cost pool on monthly basis
Answer:
(b). What to produce with unlimited resources.
Explanation:
The main economies issues involve how to produced, what to produced and whom to produced
How to produced involves the method by which the production could take place i.e machinery, equipment, etc. It consists of a labor-intensive technique and capital intensive technique.
What to produce: It is a most important question about what type of product is to be produced, in which quantities, etc
Whom to produce: For which classes, the product should be produced. It would be lower, middle or upper class. This can be determined by analysis of purchasing power
And we already know the resources are very limited.
