Answer:
<u><em>Internal control area</em></u>: it is responsible to stablish monitoring process in all the areas of the organization that prevent unlawful practices that are not in compliance with the regulations, laws or any external norm applicable to the company.
<u><em>Key areas:</em></u> below find 3 areas as subjects important to control and 3 areas as departments within the company
- prevention of reputational risk, prevention of credit risk, prevention of operational risk.
- Internal audit area, Compliance area, Legal area.
<u><em>Key controls:</em></u>
- dual controls in the manufacturing of products prevent operational errors
- due dilligences of the commercial area regarding the customers that stablish a relationship with the company
- setting manuals that contain how the procedures must be done.
Answer:
A.
2015 37.7
2016 12.9
B. Yes
Explanation:
Computation of the times interest earned ratios for 2016 and 2015
First step is to find the EBIT
EBIT: 2016 $ 2015 $
Gross profit 44,500 58,400
Less Selling, General and Administrative expenses (36,900) (38,800)
EBIT 7,600 19,600
Second step is to compute the times interest earned ratios for 2016 and 2015 using this formula
Time interest earned = EBIT / Interest expense
Let plug in the formula
Time interest earned 2016 2015
EBIT $7,600 $19,600
÷Interest expense $590 $520
=Time interest earned 12.9 37.7
Therefore the Time interest earned will be :
2015 37.7
2016 12.9
2. Yes Computer Tycoon generate sufficient net income in both 2015 and 2016 before taxes and interest in order to cover the cost of debt financing.
Answer:
The answer is $229,200
Explanation:
Cost of sales equals:
Beginning inventory plus purchases minus ending inventory.
Beginning inventory is $23,570
Purchases(net Purchase) is
Purchases $224,020
Add: Freight-In. $9,770
Minus: Purchase Returns. and Allowances. ($5,460)
Net Purchase:. $228,330
ending inventory is $22,700.
Therefore, cost of goods sold is:
$23,570 + $228,330 - $22,700
=$229,200
Answer:
$6,545.45
Explanation:
Given that,
Cost of building = $180,000
MACRS life of building = 27.5 years
Therefore, the amount of depreciation on the building is calculated by dividing the cost of building by MACRS life of building.
Amount of depreciation for the building:
= Cost of building ÷ MACRS life
= $180,000 ÷ 27.5
= $6,545.45
