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Mnenie [13.5K]
3 years ago
14

Auto Industries Company reported the following on its income statement:

Business
1 answer:
AleksandrR [38]3 years ago
7 0

Answer:

Option c. 5.25 times is the correct answer.

Explanation:

Below is the calculation:

Income before income tax = $420000

Income tax expenses = 120000 dollars

Net income = $300000

Interest expense = $80000

Interest earned ratio = Earning Before Interest and Taxes / Interest Expenses

Interest earned ratio = 420000 / 80000

Interest earned ratio = 5.25 times

Option c. 5.25 times is the correct answer.

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Grace manufactures and sells miniature digital cameras for exist330 each. 2,000 units were sold in May, and management forecasts
svetlana [45]

Answer:

2,080 units

$686,400

Explanation:

The computation of the number of camera sales in units is shown below:-

Number of camera sales in units = Sold units + (Sold units × Percentage of growth in units sales)

= 2,000 + (2,000 × 4%)

= 2,000 + 80

= 2,080 units

The computation of the amount of camera sales is shown below:-

Amount of camera sales = Number of units × Selling price per unit

= 2,080 × $330

= $686,400

5 0
3 years ago
2. Inputs and outputs Yvette's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Yvette's very t
ozzi

Answer:

In the short run, these workers are variable inputs, and the ovens arefixed inputs. TRUE

Explanation:

The statement is true. The worker are defined on a weekly basis at will by Yvette hence, short-term thus variable input.

In the other hand; the oven were leased for the entire year thus, unchangable in the short run. Yvette's decition about the number of oven in her kitchen is a long-term decition as currently are fixed.

3 0
3 years ago
Marjorie Meadow was directing a movie that included a scene featuring an off-duty police officer who is in a convenience store w
ZanzabumX [31]

Answer:

b. Yes, but only if it were substantially certain that Baxter would experience apprehension of an imminent harmful or offensive contact;

Explanation:

I'm not really sure how someone cannot tell a film is being shot, but if Barbara Baxter can prove that she actually thought her life was in danger by the actor running with the fake gun, then she could sue Meadow and the production team. This is rather unusual since filming a scene requires a lot of people, but maybe they were all inside.

5 0
3 years ago
Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a p
bixtya [17]

Answer:

$90,000

Explanation:

Given data

Net credit sales = $6,000,000

The estimated bad debt percentage is 1.50%

Credit balance in  allowance for uncollectible accounts = $42,000

Adjusted balance = $40,000

The computation of the bad debt expense is shown below:

= Net credit sales × estimated bad debt percentage

= $6,000,000 × 1.50%

= $90,000

By multiplying the net credit sales with the estimated bad debt percentage we get the bad debt expense and the same is applied in the above calculation

6 0
3 years ago
Outsourcing: Question 19 options: Transfers traditional internal activities to outside vendors. Utilizes the efficiency which co
gavmur [86]

Answer:

Transfers traditional internal activities to outside vendors.

Utilizes the efficiency which comes with generalization

Explanation:

Outsourcing can be regarded as a business practice which involves hiring a party from outside of the company so that the party can perform particular services as well as creation of goods which traditionally are been performed in-house by the employees and staff of the own company.Outsourcing helps in cost-cutting measure

It should be noted that Outsourcing ;

✓Transfers traditional internal activities to outside vendors.

✓Utilizes the efficiency which comes with generalization.

6 0
3 years ago
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