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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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Amazon.com and barnes and noble are in the same industry, but their primary difference can be defined as two companies that have
Alenkinab [10]
<span>their primary difference can be defined as two companies that have different : business models Amazon provide a medium so other sellers could sell their books through their sites. This way, they won't need any space for their house cause they sell other's product. Meanwhile, barnes and nobles is a book retailer, which means they produce and put their own books to the stores.</span>
6 0
3 years ago
Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6,100, $11,100, and
Tomtit [17]

Answer:

Total PV= $25,072.57

Explanation:

Giving the following information:

Cash flows:

Cf1= $6,100

Cf2= $11,100

Cf3= $17,300

Discount rate= 15%

<u>To calculate the present value, we need to use the following formula on each cash flow:</u>

PV= Cf / (1+i)^n

PV1= 6,100 / 1.15= 5,304.35

PV2= 11,100 / 1.15^2= 8,393.19

PV3= 17,300 / 1.15^3= 11,375.03

Total PV= $25,072.57

4 0
3 years ago
A transaction that is likely to cause an increase in a current liability is: Multiple Choice payment of accrued wages. accrual o
BartSMP [9]

Answer:

The correct answer is accrual of interest expense.

Explanation:

Interest expense is an expense you incur when you borrow money. The lender charges you a specific interest rate that is expressed in your loan document. As time passes, you are charged interest on the amount you borrowed. You may have to calculate the simple or compound interest on your loan depending on how it is structured. If the loan is for business, you will enter interest expenses in your accounting records.

8 0
3 years ago
The Walt Disney Company is world renowned for its destination resorts and theme parks. The company prides itself on providing th
rodikova [14]

Answer:

Those repairing the rides.

Explanation:

The Walt Disney Company uses a strategy to create a complete experience when visiting its destination resorts and theme parks. Disney's goal is to create a magical world, where it can win people over by the enchantment of its characters and shows.

For this strategy to be effective, there is a very adequate training of its employees, most of them are included as members of the cast, using fantasies of the iconic characters and assisting visitors and taking photos, making the experience more complete.

But in the case of the above question, the group of employees who are most likely to be considered the "ingroup" in the theme park are those who provide technical support to repair the tours, due to the fact that the application of their skills is more technical and less playful. , as most Disney employees must behave.

7 0
3 years ago
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Bachelor's degrees are awarded by
Misha Larkins [42]
A bachelor's degree (from Middle Latin baccalaureus) or baccalaureate (from Modern Latin baccalaureatus) is an undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting three to seven years (depending on institution and academic discipline).
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