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lyudmila [28]
3 years ago
8

Park Company reports interest expense of $340,000 and income before interest expense and income taxes of $6,120,000.(1) Compute

its times interest earned.(2) Park's competitor's times interest earned is 12.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad
Business
1 answer:
algol133 years ago
7 0

Answer: 1. 18 times

2. Park is in better position

Explanation:

1. Times interest earned is a financial ratio that measures interest coverage. It's essentially to check if a company can pay it's debt payments and is calculated by either EBIT or EBITDA divided by the total interest expense. The higher the better and anything above 2.5 times is usually considered.

Calculating would therefore be,

= $6,120,000 /$340,000

= 18 times.

2. As mentioned in the first answer, for the Times interest earned, the higher it is, the more favourable it is. So Park Company will be considered safer and are most definitely in a better or worse position than its competitor to make interest payments if the economy turns bad. The fact that theirs is 18 means that they can pay off their interest expense 5 times more than their competitor who can only repay 12 times.

If you need any clarification do comment.

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Write a brief story about a young person shopping at a local mall that incorporates all benefits of marketing ?
Anvisha [2.4K]

Explanation:

Marketing can be understood as the strategic development of action plans capable of building a strong relationship between the client and the company, and generating value for a brand.

Therefore, a young person shopping at a local mall that incorporates all the benefits of marketing will be responsible for bringing these advantages to a company and putting it in a successful position.

Suppose the young man had a need to buy running shoes, so he went to the mall to look for options to meet his set of needs including benefits and price. As he strolled through the mall he noticed a store whose sports shoes ads he had seen on TV, so he felt confident when he entered the store, saw images of an advertising campaign that a famous sportsman wore branded sneakers, felt identification with the brand and then was well attended by the sales team, who explained all the benefits of the product and even gave a discount to buy through the online store.

Satisfied with the purchase and service, the customer started to follow the social media of the brand in question, bought another sneaker through the online store and started to recommend the brand in their social media.

We can see that through marketing efforts, the brand is able to create a favorable shopping experience that helps to retain customers and attract new ones, so it positions itself in the market in a competitive and profitable way.

6 0
3 years ago
On January 1, the Matthews Band pays $65,800 for sound equipment. The band estimates it will use this equipment for four years a
Tamiku [17]

Answer:

Annual depreciation= $14,355

Explanation:

Giving the following information:

Original cost= $65,800

Number of units= 200

Salvage value= $2,000

During the first year, the band performs 45 concerts.

To calculate the annual depreciation under the units-of- production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units operated

Annual depreciation= [(65,800 - 2,000)/200]*45

Annual depreciation= $14,355

6 0
3 years ago
Procuring materials and refining those materials into finished projects to distribute to retail outlets are activities handled b
Tom [10]

Answer: Supply chain

Explanation:

The function of a company's supply chain is to take charge of the production of finished goods from raw materials, the distribution of the goods to various customers or retailers and also resolving customers complaints as regards the company's product.

4 0
3 years ago
Golding Bank provided the following data about its resources and activities for its checking account process: Resources Activiti
N76 [4]

Answer:

Please see below

Explanation:

The question above is incomplete. See concluding parts

2. Calculate the activity rates for the four activities . Round your answers to the nearest cent. Processing account per account issuing statement processing transactions per enquiry. If the total number of statement issued was 20,000 calculate the cost of the issuing statements activity.

1. Capacity cost rate

= Total resources / Total checking processing hours

= $396,000 / 22,000

= $18 per hour

2. Calculate the activity rates for the four activity. Round your answers to the nearest cent.

Processing accounts

= 0.20 × $18 = $3.6 per account

Issuing statements

= 0.10 × $18 = $1.8 per statement

Processing transactions

= 0.05 × $18 = $0.9 per transaction

Answering inquiries

= 0.15 × $18 = $2.7 per inquiry

If the total of issuing statement was 20,000 calculate the cost of issuing the issuing statement activity

Issuing statement

= 20,000 × $1.8

= $36,000

3 0
2 years ago
In an international transaction involving a bank as a third party, the exporter ships the product after:
nataly862011 [7]

Answer: the bank promises to pay on the importer’s behalf

Explanation:

8 0
2 years ago
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