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Trava [24]
3 years ago
14

Calculating the Times Interest Earned RatioIn the current year, Pringle Company reported Sales of $1,420,000, Interest Expense o

f 512,000, IncomeTax Expense of$13,000. and Net Income of 551000. What is Pringle’s times interest earned ratio?
Business
1 answer:
valina [46]3 years ago
4 0

Answer:

Times interest earned ratio = Net operating income/Interest expense

                                             = $551,000/$512,000

                                             = 1.08 times

Explanation:

Times interest earned is the ratio of net operating income to interest income. Net operating income = $551,000 and interest expense = $512,000. The division of net operating income by interest expense gives times interest earned ratio.

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Riverboat Adventures pays $330,000 plus $11,000 in closing costs to purchase real estate. The real estate consists of land appra
sesenic [268]

Answer:

$112,530

Explanation:

Cost Allocated to Building = ($330,000 + $11,000) × [$115,500/($115,500 + $49,000 + $185,500)] = $112,530

4 0
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In Herzberg’s two-factor theory, ____________________ are things such as challenging work assignments, accomplishment and person
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There are hygiene factors
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midshipmen Company borrows $17,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest
irina [24]

Answer:

                                        Debit                            Credit

July 2021

Cash                                 17,500

Loan payable                                                        17,500

June 30, 2022

Loan Payable                   17,500

Interest payable                 2,100

Cash                                                                     19,600

Adjusting Entry's

                                         Debit                                Credit

Interest expense               1050

Interest Payable                                                            1050

Explanation:

Interest for the year = 0.12*17500=2100

Interest expense 2021= 6/12*2100= 1050

6 0
3 years ago
Read 2 more answers
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Kay [80]

Answer:

True

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Routinized response behavior  is the decision making process used by consumers when they buy frequently purchased, low cost items that require very little search and decision effort.

Convenience goods are low cost goods that are purchased frequently with very little search and decision effort, e.g. candy, cold drinks, etc.

5 0
4 years ago
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