Answer: $33,000
Explanation: In simple words, stockholders equity is that amount of assets in the company, that is not financed by a liability. Thus, we can say that it is the difference between the assets and liabilities of the business.
It can be computed using following formula :-
stockholders equity = issuance of common stock + net income - dividend paid
= $30,000 + $8,000 - $5,000
= $33,000
I would say it has to be b or e
Answer: c. adding depreciation to EBIT in the TIE formula
Explanation:
The Times Interest Earned Ratio is used to measure the ease by which a company can pay its interest charges using its earnings before tax.
As depreciation is a non-cash expense, the amount apportioned to depreciation can be used when paying for interest so adding it back to the EBIT ensures that the cash resources of the company are included in the analysis of whether a company can pay back debt.
Answer:
Answer D
Explanation:
Please give brainliest :D
