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Evgesh-ka [11]
3 years ago
12

Which of the following transactions or events would have no immediate effect on the times interest earned ratio but will cause d

ebt to equity ratio to decrease?
a. issuing new debt
b. issuing new equity
c. having a stock split
d. recording large contingent liability for lawsuit
Business
1 answer:
Gemiola [76]3 years ago
7 0

Answer:

b. issuing new equity

Explanation:

debt to equity ratio = Total debt/ Total equity x 100

and

interest earned ratio = Operating Income ÷ Interest charge

<u>Ways to decrease debt to equity ratio :</u>

1. Increase equity (no effect on interest earned ratio)

2. Decrease debt (increases interest earned ratio)

thus,

issuing new equity have no immediate effect on the times interest earned ratio but will cause debt to equity ratio to decrease.

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At a farmer’s market, a basket of strawberries costs $20 and a basket of peaches costs $18. On Saturday, 23 baskets were sold
nlexa [21]

Based on the calculation done, there are 15 baskets of peaches.

x + y = 23 ..... i

20x + 18y = 430 ...... ii

From equation i, x = 23 - y ..... iii

Put equation iii into ii

20x + 18y = 430

20(23 - y) + 18y = 430

460 - 20y + 18y = 430

2y = 30

y = 30/2 = 15

x + y = 23.

x + 15 = 23

x = 23 - 15 = 8

Learn more about equations on:

brainly.com/question/13763238

4 0
2 years ago
As one of the seven habits of strong ethical leaders,________ is “the glue that holds ethical concepts together.” this trait can
Furkat [3]
The passion to do right
6 0
3 years ago
Why is it important for engineers to have good communication skills?
Orlov [11]
To be able to fix the thing that are broken and to communicate with each other
4 0
3 years ago
Marilyn is age 66, if she receives a $15,000 taxable HSA distribution this year, what tax penalty, if any, will apply?
Arada [10]

Answer:

No penalty

Explanation:

The tax penalty is as follows

The HSA i.e. health saving account. It is opened so that the expenses related to the medical could be paid and the high health plan i.e. deductible  (HDHP) would not covered here

In the case when rules are not followed so there is a penalty of 20%

Given that the amount taxable is $15,000

So here the penalty would be

= $15,000 × 20%

= $3,000

But since Marilyn age is 66 so there is no penalty as the penalty would be applied till the age of 65

5 0
3 years ago
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horsena [70]

Answer:

It will be counted as investment in 2016 and negative investment in 2017.

Explanation:

National income refers to the total value of a country's final output of all new goods and services produced in one year. There are various ways of measuring national income, e.g. GDP, GNP, etc

Therefore, following national income accounting practices, the car would be counted as part of the investments and GDP of 2016, and negative investment in 2017, because that was the year in which it was produced.

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