Answer:
a. True
Explanation:
TIE means times interest earned, whose formula is provided below:
Times interest earned=EBIT/interest expense
With the above formula, we can determine the EBIT (earnings before interest and tax)
Depending on the company's cost structure, when the operating costs are added to EBIT, the result would be the company's sales revenue
EBIT=Sales revenue-operating costs
Sales revenue=EBIT+operating costs
Answer:
Orange consumers will bear the burden of now having to pay a higher price than they previously did.
Explanation:
According to the question, orange growers believe that pesticides is a crucial input in the production of oranges. When the government imposes a tax or regulation on the use of pesticides, this is likely to cause the following effects:
1. Since pesticides is an input that is now taxed, cost of production increases
2. Producers will reduce the supply of oranges.
3. Supply curve shifts left from S1 to S2 (refer diagram)
4. Market equilibrium shifts from E1 to E2 (refer diagram)
5. Quantity supplied falls from QS2 to QS1 (refer diagram)
6. Price increases from P1 to P2 (refer diagram)
<em>In what sense do consumers of oranges now "pay" for dealing with the spillover costs of pesticide production?</em>
Orange consumers will bear the burden of now having to pay a higher price than they previously did.
$12120 is the annual amortization expense
<u>Explanation:</u>
The following formula is used to calculate the annual depreciation expense that will be recorded in the books of accounts
Depreciation = ( cost of the asset minus salvage value) divide by number of years.
Given data in the question: number of years = 10, cost of the asset = $124000, salvage value = $28000
Putting the figures in the formula,
Depreciation expense = ($124000 minus $28000) divide by 10
After solving, we get = $12120
Thus, annual depreciation expense = $12120
Answer: Read the following Scenario. Remembering what we learned about writing for your reader; create the documents for this situation. Use a letter format for letters and a memo format for a memo. This assignment requires sending unfavorable news. Keep in mind that each of the parties you are writing have different interests and your letters should be adjusted to give them what they need to know. In some situations it is best not to share all the information. Think about your readers as you compose. Your employer has always provided free child care to all employees with children ages 3 months to 5 years. For its 50 years of operation, the company has taken great pride in being a family-friendly employer. Tough economic times for the industry and rising costs of operation for the child care center, however, now require that the company begin charging parents $100 per month per child for the services of the child care center. According to the president of the company it was either that or freeze wages for all employees or lower the already slim dividend paid to the company’s stockholders and risk a loss of investors. The president of the company directs you to write three letters regarding this important change: one to parents using the child care center, one to all employees, and one to the stockholders. Note that parents will also receive the letter addressed to employees. Note also that some employees are also stockholders. The president recognizes the sensitivity of this policy change and thus will also expect from you a memo justifying the variations you made in the three letters. Make sure you have three letters and one memo. Make up addresses and/