Answer:
1. B. 3.14
2. C. 1.12
Explanation:
1. Times Interest Earned ratio
Measures how well a company is able to cover it's debt obligations using it's earnings.
The formula is simply,
= Earning before Interest and Tax / Interest Expense
Therefore,
Times Interest Earned ratio = 116/37
= 3.14
HHF's times interest earned ratio is Option B, 3.14.
2. Debt to Equity Ratio
This ratio compares the debt used to fund a company vs it's equity. It measures how much of either way used to fund the company.
The formula is,
= Total Debt / Total Equity
= 540/484
= 1.12
HHF's Debt to Equity ratio is 1.12, Option C.
Answer:
Wormwood limited
Production plan that will yield the least cost of $49,630 is shown in the attached document.
It entails maxing out the regular capacity from period 1 to 5, and using regular to produce only 140 units in period 6
It further entails using overtime to produce 10 units from period 1 to 5. And subcontracting only in period 4 to cover the demand/production gap.
This will keep inventory of 10 units in period 2, which is carried into period 3 and consumed in period 4.
Answer:
$200,000
Explanation:
The computation of the net revenue is shown below:
= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable
= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000
= $200,000
We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable
Answer:
An investment firm or fund is a partnership, trust or corporation that “pools” money from shareholders and invests it in the appropriate security instruments and multiply investment money.
Sales: $914,000
Variable Costs: $498,130
Operating Income: $196,000
Contribution Margin Ratio = ?
Formula:
Contribution Margin Ratio = (Sales – Variable Costs) / Sales
Solution:
Contribution Margin Ratio = ( $914,000 - $498,130) /
$914,000
Contribution Margin Ratio = 45.5% (Answer)