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Nastasia [14]
4 years ago
12

In the past year, TVG had revenues of $3 million, cost of goods sold of $2.5 million, and depreciation expense of $200,000. The

firm has a single issue of debt outstanding with book value of $1 million on which it pays an interest rate of 8%. What is the firm’s times interest earned ratio?
Business
1 answer:
beks73 [17]4 years ago
5 0

Answer:

TVG

Times Interest Earned Ratio (TIER) = Earnings Before Interest & Taxes divided by Interest Expense

= $300,000/$$80,000 = 3.75 times

Explanation:

a) TVG Income Statement:

Revenue                $3,000,000

Cost of goods sold 2,500,000

Gross profit             $500,000

Depreciation             200,000

EBIT                        $300,000

Interest Expense       80,000

Pre-tax Income     $220,000

b) TVG's TIER shows the number of times that its earnings before interest and taxes covers the interest expense.  It shows the ability of the TVG to settle its maturing debt obligations from current earnings.  It is an important financial performance measure which potential investors in TVG will use to gauge the ability of TVG to meet financial obligations from the earnings it generates.

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"The acquisition of land: "
lesantik [10]

Answer:

The correct answer is the second option: is reported in the investing section of a statement of cash flows.

Explanation:

To begin with, a <em>statement of cash flows</em> is the name given in the business world to refer to the financial statement that shows how changes are made in the balance sheet accounts and how income affect cash and cash equivalents. Moreover, the main purpose of this financial tool is to show the company its ability to pay bills regarding the topics of how much cash and cash equivalents actual are in the company's possession.

Secondly, the cash flow statement is partitioned into three different segments: cash flow resulting from operating activites, from investing activities and from financing activities. <u>The second one, cash flow resulting from investing activities implies the situation of land acquisition</u>.

6 0
3 years ago
North co., a nonissuer, asked its tax accountant, king, a cpa in public practice, to generate north's interim financial statemen
Yakvenalex [24]

I believe the answer is: Statements on Standards for Accounting and Review Services.

Statements on Standards for Accounting and Review Services refers to an authoritative declaration on an unaudited financial statement (usually the financial statement of the company that is not selling its share on the market). This statement is issued by  Accounting and Review Services Committee.

5 0
3 years ago
Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The amount paid to the bond
Digiron [165]

Answer: $33750

Explanation:

First and foremost, we have to calculate the interest paid for the year which will be:

= $750000 X 9%

= $750000 × 0.09

= $ 67500

Therefore, the semi annual payment will them be calculated as:

= $67500 / 2

= $33750

7 0
3 years ago
if a firm is operating at the point of tangency between an isoquant and an isocost line, its production is:
Natasha2012 [34]

If a corporation is working on the factor of tangency among an isoquant and an iso-cost line, its manufacturing is: each technically and economically efficient.

The required details for isoquant in given paragraph

Since the corporation is on an isoquant, it can not produce the identical quantity of output with fewer inputs, and so it's miles technically efficient. Since any motion alongside the isoquant will growth expenses with out converting output, the corporation is likewise economically efficient. An isoquant curve is a concave-fashioned line on a graph, used within side the have a look at of micro economics, that charts all of the factors, or inputs, that produce a unique stage of output. This graph is used as a metric for the have an impact on that the inputs—maximum commonly, capital and hard work—have at the available stage of output or manufacturing. The isoquant curve assists corporations and corporations in making changes to inputs to maximize manufacturing, and for that reason profits.  

Most typically, an isoquant suggests combos of capital and hard work, and the technological tradeoff among the two—how a whole lot capital might be required to update a unit of hard work at a sure manufacturing factor to generate the identical output.

To know about isoquant click here

brainly.com/question/13871288

#SPJ4

4 0
2 years ago
Suppose Firm A has a supply curve of Upper Q Subscript Upper A Baseline equals negative 2 plus p and Firm B has a supply curve o
Sonja [21]

Answer:

The total supply can be found by adding individual supply functions as follows:

Qa+Qb = Q

Q = -2+p+0.5p

Q= -2+1.5p where p = $44 therefore;

Q= -2+1.5(44)

Q= 64

Total supply at p = $15

Q= -2+15(1.5)

Q= 20.5

8 0
4 years ago
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