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SpyIntel [72]
3 years ago
9

Sometimes called the coverage ratio, this ratio measures the risk that interest payments will not be made if earnings decrease.

a.Number of days' sales in inventory b.Times interest earned ratio c.Ratio of fixed assets to long-term liabilities d.Ratio of liabilities to stockholders' equity
Business
1 answer:
tester [92]3 years ago
7 0

Answer:

The correct answer is letter "B": Times Interest Earned Ratio.

Explanation:

Times Interest Earned (TIE) ratio or the coverage ratio tests the capacity of a company to pay off its debts. TIE is calculated by dividing the company's earnings before interest and taxes by the interest that is payable on its debts. A low ratio means the company struggles to pay its debt, and if it fails to meet its obligations, it may face bankruptcy. A high ratio means that an organization can cover its expenses.

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Last year, 7,980 units were produced and 7,680 units were sold. There was no beginning inventory. The carrying value on the bala
ElenaW [278]

Complete Question:

The Southern Corporation manufactures a single product and has the following cost structure: Variable costs per unit: Production $ 35 Selling and administrative $ 14 Fixed costs per year: Production $ 175,560 Selling and administrative $ 140,450 Last year, 7,980 units were produced and 7,680 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

Multiple Choice

$6,600 less than under absorption costing.

$7,680 less than under absorption costing.

the same as absorption costing.

$7,680 greater than under absorption costing.

Answer:

The Southern Corporation

The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:

$6,600 less than under absorption costing.

Explanation:

a) Data and Calculations:

Variable costs per unit:

Production $ 35

Selling and administrative $ 14

Fixed costs per year:

Production $ 175,560

Selling and administrative $ 140,450

Production units last year = 7,980 units

Sales units last year = 7,680 units

Ending inventory = 300 (7,980 - 7,680) units

Value of Ending inventory:

1. Variable Costing:

Production $ 35 * 300 = $10,500

2. Absorption Costing:

Variable Production $ 35 * 7,980 = $279,300

Fixed Production overhead             $ 175,560

Total production costs =                  $454,860

Units produced = 7,980

Unit cost = $57

Ending inventory = $17,100 ($57 * 300)

Difference = $6,600 ($17,100 - $10,500)

4 0
3 years ago
When are monopolies good?
zlopas [31]

Answer:

When Monopolies Are Good. Sometimes a monopoly is necessary. It ensures consistent delivery of a product or service that has a very high up-front cost. An example is electric and water utilities. Brainliest Please

Explanation:

3 0
3 years ago
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Establishing rules that will help you stay focused is called
Marianna [84]
The answer would be self-discipline 

The definition of self-discipline:   <span>the ability to control one's feelings and overcome one's weaknesses; the ability to pursue what one thinks is right despite temptations to abandon it.</span>
7 0
3 years ago
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Which principle of design is used to make one element of a design stand out?
Olegator [25]
B is the correct answer.
5 0
3 years ago
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At a restaurant the cost for a breakfast taco and a small glass of milk is $2.10. The cost for 2 tacos and 3 small glasses of mi
aliya0001 [1]

Answer:

m=$0.95

t=$1.15

Explanation:

Let m=cost of milk

t=cost of taco

t+m=$2.10 (1)

2t+3m=$5.15 (2)

From (1)

t=$2.10-m

Sub into (2)

2($2.10-m)+3m=$5.15

$4.2-2m+3m=$5.15

$4.2+m=5.15

m=$5.15-$4.2

m=$0.95

Sub value of m into (1)

t+m=$2.10

t+$0.95=$2.10

t=$2.10-0.95

t=$1.15

4 0
3 years ago
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