Answer:
TVG
Times Interest Earned Ratio (TIER) = Earnings Before Interest & Taxes divided by Interest Expense
= $300,000/$$80,000 = 3.75 times
Explanation:
a) TVG Income Statement:
Revenue $3,000,000
Cost of goods sold 2,500,000
Gross profit $500,000
Depreciation 200,000
EBIT $300,000
Interest Expense 80,000
Pre-tax Income $220,000
b) TVG's TIER shows the number of times that its earnings before interest and taxes covers the interest expense. It shows the ability of the TVG to settle its maturing debt obligations from current earnings. It is an important financial performance measure which potential investors in TVG will use to gauge the ability of TVG to meet financial obligations from the earnings it generates.
Answer:
(B) Assets will increase by $20,000, liabilities will increase by $20,000, and stockholders' equity will remain unchanged
Explanation:
Signing a note of $20,000 with a bank to purchase an equipment will have the following double entry in the books of the borrower.
Debit Equipment (asset) account $20,000 (an increase in assets)
Credit Bank Notes (liability) account $20,000 (an increase in liabilities).
Answer:
$1,068.02
Explanation:
For computing the selling price of the bond we need to use the Future value formula or function i.e to be shown in the attachment below:
Given that,
Present value = $1,000
Rate of interest = 10% ÷ 2 = 5%
NPER = 3 years × 2 = 6 years
PMT = $1,000 × 8% ÷ 2 = $40
The formula is shown below:
= FV(Rate;NPER;PMT;-PV;type)
The present value comes in negative
So, after applying the above formula, the selling price of the bond is $1,068.02
Answer:
The price of a Dinner= $6.22
Explanation:
<em>Mark-up is the proportion of the product cost which is expected to be made as profit. In other words, it is profit expressed as a percentage of product cost.</em>
To account for the spoilage rate of 10%, $3.50 unit cost would be consider as 90% of the cost. Thus, 100% of the cost would be given as follows:
Dinner cost = 100/(100-10)× 3.50= 3.89
The price of a Dinner = product cost + 60% of product cost
The price of a Dinner = 3.89 + 60%*3.89= $6.22
The price of a Dinner= $6.22
