Answer:
2.22 times
Explanation:
Interest earned ratio is computed as;
Interest earned ratio = Earnings before interest and taxes / Total interest payable
Given that;
Earnings before interest and taxes = $20,000
Total interest payable = $9,000
Therefore,
Interest earned ratio = $20,000 / $9,000
Interest earned ratio = 2.22 times
Answer:
An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.
Answer:
This securities investment classifies as unrealized gains, as it has to be reported in the balance sheet under shareholder equity in the Accumulated Other Comprehensive Income account.
Explanation:
Unrealized gains (or losses) only exit on paper, since the company cannot recognize the gains until it sells the securities. It is an estimate of the profits that the company can make when it sells the securities, but until it does, they cannot be included in the income statement.
Answer: The answer is D. add non-cash charges to net income.
Explanation: Based on the limited information provided in the question, for indirect cash flows, to evaluate after-tax operating cash flows, you have to add back the non-cash items to net income.
Non-cash items such as depreciation, loss on sale of assets, amortization usually lead to reduction in net income but they are not actual payment to anyone. To arrive at the cash flows from operating activities, these non-cash items have to be added back to the net income to reflect the actual cash operating activities.