Answer:
Number of times bond interest charges were earned = 5.44
Explanation:
Given data,
Bond Interest Rate = 6%
Bond Amount = $1200000
Net Income before Income Tax = $320000
Bond Interest charges Earned
:
= Bond Value × Interest Rate
= $1,200,000 × 6%
= $72,000
Net Income before Interest
:
= Net Income Income Before Interest + Interest
= $320,000 + $72,000
= $392,000
Number of times bond interest charges were earned
:
= Net Income before Interest and taxes ÷ Interest charges
= (392,000 ÷ 72,000
)
= 5.4444
Number of times bond interest charges were earned = 5.44
Answer: d. 3.82%
Explanation:
ROE = Net Income / Equity so Equity need to be ascertained.
1.75 = Total Assets/ Total Equity
Total Equity = Total Assets/ 1.75
1.33 = Revenue / Total Assets
Total Assets = Revenue / 1.33
= 320,000/1.33
= $240,601.50
Total Equity = 240,601.50/1.75
= $137,486.57
Old ROE = 10,549/ 137,489.57
= 0.07672582
= 7.67%
New ROE = (10,549 + 5,250) / 137,489.57
= 0.11491053466
= 11.49%
Difference = 11.49 - 7.67
= 3.82%
Answer:
Total Fixed costs: $
Rent 2,000
Utilities 700
Salaries 2,950
Advertising 50
Total fixed cost 5,700
Contribution per car = Selling price - Unit variable cost
= $10.50 - $2.50
= $8.00 per car
Break-even point in full-service car
= <u>Total fixed cost</u>
Contribution per car
= <u>$5,700</u>
$8.00
= 712.5 = 713 cars
Explanation:
Break-even point in full-service car equals total fixed cost divided by contribution per car. Contribution per car is selling price minus variable cost per car.
I think its A cuz its about good or bad credit all the time
D) Salaries
Revenue is the income for your business so you make a profit from fund raisers, donations and fees charged per child. You are losing revenue when you have to pay your workers salaries
