Answer:
a. 9.15 times
b. 4.61 times
c. 31.52%
d. 1.08 times
e. 20.88 %
Explanation:
<em>Note : I have attached the full question as image below.</em>
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<em>Interest Coverage = Earnings Before Interest and tax ÷ Interest expense</em>
= $85,100 ÷ $9,300
= 9.15 times
<em>Fixed Charge Coverage = EBIT + Lease Payments ÷ Interest Payments + Lease Payments</em>
= $85,100 + $11,700 ÷ $9,300 + $11,700
= 4.61 times
<em>Profit margin = Operating Profit / Sales x 100</em>
= $85,100 / $270,000 x 100
= 31.52%
<em> Total asset turnover = Sales ÷ Total Assets </em>
= $270,000 ÷ $249,000
= 1.08 times
<em>Return on assets (investment) = Earning Before Interest after Tax / Total Assets x 100</em>
= ($45,480 + $9,300 x 70%) / $249,000 x 100
= 20.88 %
Answer:
C. eat more pizza and spend less on pizza than he did before the price decrease.
Explanation:
The inelastic means that when the elasticity is less than one
Since the demand for pizza is inelastic and the price of pizza decreases that would result in an increase in the quantity demanded of pizza.
Though the price of pizza decreases, the Pablo spend less than before as the price and the quantity demanded has an inverse relationship.
Answer:
Initial Investment= $94,769.7
Explanation:
Giving the following information:
Annual payment (A)= $25,000
Interest rate (i)= 10%
Number of periods (n)= 5 years
<u>To calculate the initial investment, we need to use the following formula:</u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 25,000*{(1/0.1) - 1/[0.1*(1.1^5)]}
PV= $94,769.7
Time value of money deals with the increasing amounts of money due to interest.
Answer:
c. Partnership losses may be carried forward indefinitely.
Explanation:
Regarding taxes, the IRS treats partnerships as pass through entities, therefore, if the partners are not able to use the partnership's loss (or losses) to offset any tax basis in their current income statements, they can carry them forward indefinitely (at least theoretically). This can be done until their tax basis is sufficient to offset the losses generated by the partnership.