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3 years ago

Long-Term Solvency Ratios Summary data from year-end financial statements of Palm Springs Company for 2017 follow.

Business

1 answer:

wolverine [178]3 years ago

5 0

Answer:

a. Compute the ratio of times-interest-earned.

times-interest-earned = EBIT / interest expense

EBIT = $4,839,900
interest expense = $2,210,000

times-interest-earned = $4,839,900 / $2,210,000 = 2.19

b. Compute the debt-to-equity ratio.

debt-to-equity ratio = total liabilities / total stockholders' equity

total liabilities = $900,000
total stockholders' equity = $400,000

debt-to-equity ratio = $900,000 / $400,000 = 2.25

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Which of these usually require students to maintain a specific number of hours and grade point average?

Fudgin [204]

Elaborate? You seem to be missing answer choices..

8 0

2 years ago

When a company exchanges machinery and receives a trade-in allowance greater than the book value, this transaction would be reco

77julia77 [94]

Answer:

b. debit Machinery and Accumulated Depreciation; credit Machinery, Cash, and Gain on Disposal

Explanation:

When machinery exchange and its value is greater than the book value so the journal entry is recorded which is shown below:

Machinery A/c Dr XXXXX

Accumulated depreciation A/c Dr XXXXX

To Machinery A/c XXXXX

To Cash A/c XXXXX

To Gain on disposal A/c XXXXX

(Being the exchange is recorded)

Hence the most appropriate option is b.

7 0

3 years ago

To be able to go on the band trip, four band members each get a part-time job. Each person has 5 weeks in which to save his or h

Arturiano [62]

Answer:

Member B: Works 10 hours per week at $5.85 per hour

Member D: Works 9 hours per week at $6.35 per hour

4 0

3 years ago

Read 2 more answers

Tamarisks Hardware reported cost of goods sold as follows. 2019 2020 Beginning inventory $ 23,000 $ 33,500 Cost of goods purchas

Pavel [41]

Answer:

$146,500; $194,000

Explanation:

(1) Correct amount of cost of goods sold for 2019:

= Beginning inventory + Cost of goods purchased - Correct ending inventory

= $23,000 + $153,500 - (Ending inventory value - Overstated value)

= $23,000 + $153,500 - ($33,500 - $3,500)

= $23,000 + $153,500 - $30,000

= $146,500

(2) Correct amount of cost of goods sold for 2020:

= Beginning inventory + Cost of goods purchased - Correct ending inventory

= $33,500 + $191,500 - (Ending inventory value - Understated value)

= $33,500 + $191,500 - ($37,500 - $6,500)

= $33,500 + $191,500 - $31,000

= $194,000

6 0

2 years ago

Potter & Lopez Inc. just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12

AfilCa [17]

Answer:

$3.76

Explanation:

Calculation of the implied value of each warrant

First step is to find the straight-debt value

Straight-debt value:

N = 20

I/YR = 15

PMT = −120

FV = −1000

PV = $812.22

Using this formula

Total value = Straight-debt value + Warrant value

Where,

Total value =$1,000

Straight-debt value=$812.22

Warrant=50

Let plug in the formula

$1,000 = $812.22 + 50

Second step is to find the warrant value

Warrant value= ($1,000 −$812.22)/50

=$187.78/50

=$3.7556

Approximately $3.76

Therefore the implied value of each warrant will be $3.76

4 0

2 years ago