All categories

3 years ago

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.

You might be interested in

Today, ecoterrorists in america have taken many radical actions, including burning down ski lodges, blowing up hummers, freeing

Romashka-Z-Leto [24]

Answer:

Positive deviance

Explanation:

Positive deviance is a methodology that is used by individuals who are associated with Eco-terrorism. They utilize radical criminal acts to spread their ecological philosophies. These individuals generally look for ratification of other people who share similar philosophies. These criminals believe that they will be viewed as heroes, and their actions will be seen as positive deviance.

5 0

2 years ago

Read 2 more answers

Economics Airlines currently spends $20,000 per month in airport fees and $10,000 per flight for fuel, crew, and airplane mainte

Kamila [148]

Answer:

b. 20

Explanation:

For 5 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (5 X 10000) + 20,000 = $70,000

For 6 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (6 X 10000) + 20,000 = $80,000

Additional Cost for 6th flight = $80000-70,000 = $10,000

Minimum No. of Passenger to cover the cost = Additional cost / Ticket price per seat

Minimum No. of Passenger to cover the cost = $10,000 / $500 = 20 seats passengers.

3 0

2 years ago

On January 2, 20Y4, Whitworth Company acquired 40% of the

Gelneren [198K]

Answer:

Journal entries needed for:

a. Purchase of stock

b. Share of Aloof income

c. Dividend

d. Sale of Aloof company stock

a. Purchase of stock

Date Account Title Debit Credit

Jan 2, 20Y4 Investment in Aloof company $340,000

stock

Cash $340,000

b. Share of Aloof income

Date Account Title Debit Credit

Dec 31, 2024 Investment in Aloof company $72,000

stock

Income of Aloof Company $72,000

Working:

= 40% * 180,000 income

= $72,000

c. Dividend

Date Account Title Debit Credit

Dec 31, 2024 Cash $4,000

Investment in Aloof company $4,000

stock

Working:

= 40% * 10,000 dividend

= $4,000

d. Sale of stock

Date Account Title Debit Credit

Dec 31, 2024 Cash $405,000

Loss on sales of Aloof $3,000

company stock

Investment in Aloof company $408,000

stock

Working:

Value of stock = Purchase price + share of Aloof income - Share of dividend

= 340,000 + 72,000 - 4,000

= $408,000

6 0

2 years ago

Typically included in the project charter, the ____ section describes how the project objectives will be met, provides a list of

Aliun [14]

Answer: The correct answer is PROJECT APPROACH

Explanation:

The Project Approach is a section in the Project Charter that describes in words the thinking that goes into the creation of the project schedule. It describes how the objectives of the project intend to be met, enlists important assumptions, and often gives references to related documents.

3 0

3 years ago

Read 2 more answers

Bombs Away Video Games Corporation has forecasted the following monthly sales:

levacccp [35]

Answer:

I have attached the excel file which shows the entire calculation of all the parts of your question. Majority of the numbers are linked so that its easy for you to understand. Key points before you look into file.

1) Number of units have derived by dividing revenue over sales price per unit which is $5

2) Production units are calculated by dividing total sales unit by 12 (as mentioned in the question)

3)Keep in mind that 80% of revenue will be received next month of the sales therefore also include in January sales receipt the 80% revenue of previous month

Explanation:

Download xlsx

7 0

2 years ago

Read 2 more answers