1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olasank [31]
3 years ago
5

The Morrit Corporation has $1,080,000 of debt outstanding, and it pays an interest rate of 11% annually. Morrit's annual sales a

re $6 million, its average tax rate is 25%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 6 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio?
Business
1 answer:
alukav5142 [94]3 years ago
7 0

Answer:

3.020

Explanation:

Morrit Corporation

interest amount = $1,080,000*.11 = $118,800

Net profit = 3% *$6,000,000= $180,000

Net profit + tax = profit before tax =

180000/.75 = 240000

Profit before tax + Interest = Earning before interest and tax

= $240,000+$118,800 = $358,800

TIE ratio= EBIT/Interest = $358,800/118,800

= 3.020

Therefore the TIE ratio is 3.020

You might be interested in
Complete the following table by selecting the term that matches each definition on the left.
Elanso [62]

Answer:

The correct answers are the following:

1 - C

2 - B

3 - D

4 - A

Explanation:

1 - C: The market labor demand curve is represented graphically by the relationship between the wage rate and the quantity of labor firms are willing to hire in a market due to the fact that the firms are the ones who are looking for workers and therefore they demand it.

2 - B: The market labor supply curve is represented graphically by the relationship between the wage rate and the quantity of labor that the workers are willing to provide due to the fact that they are the one who put their work in the market in order to be used.

3 - D: The marginal product of labor represents the increase in the amount of output from an additional unit of labor that an additional worker puts in the firm.

4 - A: The value of the marginal product of labor comprehends the additional revenue the firm receives from selling the output produced from and additional unit of labor that an additional worker put in the firm.

8 0
3 years ago
As a gardener, Joey earns $19.20 per hour. He earns double time for work on Saturdays. Last week, he worked 25 regular hours plu
erastovalidia [21]
Kdisbzibsisbsisbzosbfjnrnd
5 0
3 years ago
Please HELP! Will mark brainliest!!
kifflom [539]

Answer:

I would say safekeeping of employees and guests, as well as eliminating probable threats.

Explanation:

7 0
3 years ago
2. Explain the strengths of a sole proprietorship and wn
adoni [48]

Explanation:

strengths:

1. He or she enjoys all the profit

2. easy to start up

3. decision making is quick

4.he or she can vary the hours of work

weakness:

1.there is lack of finance

2. lack of specialised staff

3.the owner bears all the risk

4.there is unlimited liability

who might start a sole proprietor business

1. a person that wants to be their own boss.

2.extra income.

3.the entrepreneur might think he will make more money working for his self than others.

6 0
3 years ago
Requiring industries to recycle 25% of plastics in their manufacturing process is an example of:
vodka [1.7K]
<span>By requiring industries to recycle 25% of plastics in their manufacturing process is one way to prevent pollution and save our environment. We all know that most plastics are not biodegradable, it means that they cannot be decomposed naturally no matter what you do to it. Burning plastic would even harm our environment. In that being said, recycling them would be a better choice. By reusing plastics, the number of it that would just contribute to the world's pollution would be reduced.</span>
4 0
3 years ago
Other questions:
  • A company reported that its bonds with a par value of $50,000 and a carrying value of $65,500 are retired for $70,200 cash, resu
    7·1 answer
  • Toys Unlimited has the following cost data available. Direct Materials are $99 per unit. Direct Labot is $55 per unit. Variable
    15·1 answer
  • How do u maintain your allowance
    10·1 answer
  • Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The
    15·1 answer
  • Suppose taxi fares from Logan Airport to downtown Boston is known to be normally distributed and a sample of seven taxi fares pr
    11·1 answer
  • When Hertz Rent-a-Car decides to expand its fleet, several companies as well as consumers will be involved. Financial services w
    6·1 answer
  • Javonte Co. set standards of 2 hours of direct labor per unit of product and $16.10 per hour for the labor rate. During October,
    12·1 answer
  • Omg im bout to pass out dont say that
    9·2 answers
  • One poor country produces nearly 97% of the quinoa consumed around the world, and most of it is sold to wealthy nations. Althoug
    14·1 answer
  • ritzer argues that the operating procedures perfected (but not originated) by have been duplicated in countless arenas from amus
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!