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Elden [556K]
3 years ago
12

Companies A and B each have the same level of total assets, the same tax rate, and the same earnings before interest and taxes (

EBIT). Company A, however, has a higher debt ratio. Which of the following statements is most correct?a.Company A has a lower return on assets (ROA).b.Company A has a lower basic earning power (BEP).c.Company A has a lower times interest earned (TIE) ratio.d.Answers a and c are correct.e.All of the answers above are correct
Business
1 answer:
anygoal [31]3 years ago
5 0

Answer:

a.Company A has a lower return on assets (ROA).

c.Company A has a lower times interest earned (TIE) ratio.

That is options a and c

Explanation:

For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.

ROA= Net income/Total assets

Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.

TIE = Earnings before Interest and Tax/Interest

Due to higher debt of company A it's interest will be higher resulting in low TIE.

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​Tom's Taxidermy has a monthly target operating income of $29,000. Variable expenses are 65​% of sales and monthly fixed expense
HACTEHA [7]

Answer:

Leverage factor will be 1.344

Explanation:

We have given operating income = $29000

And variable expenses is 65 5 of the sales

And fixed expenses = $10000

So contribution margin = $29000+$10000 = $39000

We have to find the leverage factor

Leverage factor is given by

Leverage factor =\frac{contribution\ margin}{operating\ income }=\frac{39000}{29000}=1.344

So leverage factor will be 1.344

5 0
3 years ago
Using the data set below, what would be the forecast for period 5 using the exponential smoothing method? Assume the forecast fo
elena55 [62]

Answer:

The answer is C: 14300

Note: The actual answer is 14296, <em>and </em>the closest to that was option C.

Explanation:

Formula to calculate forecast using Exponential smoothing:

  •    F_{t} = F_{t-1} + \alpha ( A_{t-1} - F_{t-1} )

Where,

  • F_{t} = New Forecast
  • F_{t-1} = Previous period's forecast.
  • \alpha = Smoothing Constant
  • A_{t-1} = Previous period's Actual Demand.
  1. Calculating the forecast for period 5:

Data:

  • F_{5} = ?
  • F_{t-1} = 14000
  • \alpha = 0.4
  • A_{t-1} = 14750

Putting <em>values in the formula:</em>

F_{5} = 14000 + 0.4(14750-14000)

F_{5} = 14000 + 0.4 (740)

F_{5} = 14000 + 296

F_{5} = 14296

4 0
3 years ago
A dot plot titled Miles Emilia Ran Each Week going from 1 to 6. 1 has 2 dots, 2 has 3 dots, 3 has 2 dots, 4 has 2 dots, 5 has 3
ipn [44]

Answer:

The true statement is " The spread is from 1 to 6."

Explanation:

Consider the provide information.

First we will draw the dot plot as shown in the figure.

Now consider the options.

The data is not symmetric as for the symmetry the dots over 1 should be equal to the dots over 6. i.e 4.

Now find the center of the data by calculation the median of the data.

There are 16 dots in total which is an even number.

So, now we will find the average of the two middle values.

This will be the 8th and 9th value average for the given data set of 16 values.

Count from left to right the 8th and 9th values are both 4.

\text{Median}=\frac{4+4}{2}

\text{Median}=4

Hence, the center of the data is 4.

The second statement is false.

The peak of the data is at 6.

The third statement is false.

The spread is from 1 to 6 as we can see in the figure shown below.

Therefore, the true statement is " The spread is from 1 to 6."

8 0
3 years ago
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Which of the following is required to be present in an Employment Verification Letter?
Furkat [3]

Answer:

name, title, salary, and dates of employment. 

Explanation:

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5 0
2 years ago
After a business transaction has been analyzed and entered in a journal, the next step in the recording process is to transfer t
Jlenok [28]
After recording the transaction in journal you must record it on General Ledger.
3 0
3 years ago
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