1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ulleksa [173]
2 years ago
8

Alumbat Corporation has $800,000 in debt outstanding, and pays an interest rate of 10 percent annually on its bank loan. Alumbat

's annual sales are $3,200,000, its average tax rate is 40 percent, and its net profit margin on sales is 6 percent. If the company does not maintain a TIE ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. Alumbat's current times interest earned ratio is:
Business
1 answer:
stealth61 [152]2 years ago
3 0

Answer: 5.0

Explanation:

Times interest earned ratio = Earnings before Interest and Tax / interest

Interest = 800,000 * 10%

= $80,000

Net Income = 6% of sales

= 6% * 3,200,000

= $192,000

Taxes are accounted for already so to get the taxable income;

Earnings before tax = 192,000 / ( 1 - Tax rate)

= 192,000 / ( 1 - 0.4)

= $320,000

Earnings before Interest and Tax = 320,000 + 80,000

= $400,000

Times interest earned ratio = 400,000/80,000

= 5.0

You might be interested in
In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company?
Kazeer [188]

Answer:

B, Italy

Explanation:

In Italy, 60 percent of the shares of a public company are owned by the 3 largest shareholders. This invariably means that the decision making of public companies are mostly at the mercy of just 3 persons as against larger numbers in other countries.

Cheers

5 0
3 years ago
Ethan considered three important attributes when deciding where he would do his banking: the convenience of the location, hours
sineoko [7]

Answer:

<em>c. evaluative criteria </em>

Explanation:

Evaluative criteria are <em>when a consumer chooses a different product because of factors like value, cost, and functionality from the one they initially had in mind. </em>

It could take a little while for certain consumers to study and explore different goods before they purchase.

While some, just before they purchase, can make the decision automatically.

4 0
3 years ago
An important feature of a job order cost system is that each job:_______.
sammy [17]

Answer:

D

Explanation:

it has it's own distinguishing characteristics ....Form used to record the cost chargeable to a specific job and to determine the total and unit cost of the completed job

6 0
3 years ago
As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she n
ExtremeBDS [4]

Answer: disturbance handler; decisional; more through others.

Explanation:

As a new manager, Candace has had to learn a lot, and sometimes her job is more stressful than she expected. As a manager, she needs to fulfill many roles. Candace schedules employees for shifts at the front desk, in the dog play areas, and in the bathing and grooming rooms.

This is part of the disturbance handler role of management, which falls under the decisional component. To adapt to being a manager, Candace has had to get things done by working more through others.

4 0
3 years ago
You've collected the following information about a company: Assets Liabilities and Equity Cash 13,000 Accounts payable 16,000 Ma
professor190 [17]

Answer:

The answer is "$228,000"

Explanation:

Formula:

\text{Total Assets = Current Assets + Fixed Assets}

                    = [\$ 13,000 + \$ 2,000 + \$ 4,000 + \$ 95,000] + [\$ 34,000 + \$ 80,000]\\\\= [\$ 114,000] + [\$ 114,000]\\\\= \$ 228,000

8 0
3 years ago
Other questions:
  • Several years ago the Haverford Company sold a $1,000 par value bond that now has 25 years to maturity and an 8.00% annual coupo
    8·1 answer
  • g the following population and employment data for the United States (2000–2016), answer three questions. Instructions: Enter yo
    5·1 answer
  • When a certain competitive firm produces and sells 100 units of output, marginal revenue is $80. When the same firm produces and
    11·1 answer
  • Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four sh
    12·1 answer
  • Three airlines account for most of the air traffic in and out of a local city. If the three airlines joined together in setting
    10·1 answer
  • You are one of five risk-neutral bidders participating in an independent private values auction. Each bidder perceives that all
    5·1 answer
  • You want to endow a scholarship that will pay $13000 per year​ forever, starting one year from now. If the​ school's endowment d
    7·1 answer
  • The Red Bud Co. pays a constant dividend of $2.40 a share. The company announced today that it will continue to do this for anot
    11·1 answer
  • Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between th
    12·1 answer
  • Compare and contrast modern workplace, social, and environmental ethical dilemmas in the hospitality industry.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!