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EastWind [94]
3 years ago
10

The following data come from the financial records of Campbell Corporation for Year 3: Sales $ 840,000 Interest expense 5,000 In

come tax expense 25,500 Net income 25,500 Required How many times was interest earned in Year 3
Business
1 answer:
kumpel [21]3 years ago
7 0

Answer:

the times was interest earned in Year 3 is 11.2 times

Explanation:

The computation of the times interest earned ratio is given below:

The times interest earned ratio is

= (Net income+ Income tax expense+ Interest expense) ÷ Interest expense

= ($25,500 + $25,500 + $5,000) ÷ $5,000

= 11.2 times

Hence, the times was interest earned in Year 3 is 11.2 times

The same is to be relevant

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Watson Company purchased assets of Holmes Ltd. at auction for $1,390,000. An independent appraisal of the fair value of the asse
____ [38]

Answer:

Dr land        $278,000

Dr building  $347,500

Dr equipment $556,000

Dr inventories $208,500

Cr cash                                 $1,390,000

Explanation:

The total amount spent in acquiring the assets is $1,390,000 which needs to be shared between the assets acquired on the basis of individual values of the assets

Total of individual assets' values=$304000+$380000+ $608000+$228000=$ 1,520,000.00  

Cost attributable to land:$304000/$1520000*$1,390,000=$ 278,000.00  

Cost attributable to Building:$380000/$1520000*$1390000=$ 347,500.00  

cost attributable to equipment=$608000/$1520000*$1390000=$556,000.00

cost attributable to inventories=$228000/$1520000*$1390000 =$208,500.00  

6 0
3 years ago
Phionia Phelps has developed a gourmet cat food. Not only is this food eagerly eaten by the most finicky felines, but it is spec
pickupchik [31]

Answer:

Explanation:

a.

Sales budget = $ 250 per case * 100 cases per batch * 6 batches per day * 20 days a month * 6 months

= $ 18,000,000

b. Production budget in units = 100 cases per batch * 6 batches per day * 20 days a month * 6 months

= 72,000 cases

Production budget including 10 percent inventories

= 72000 + 100*6*20*10%

= 73200 cases

c. Direct materials purchases budget in pounds including 5% inventories

Lamb = 5 pounds per case * (73200 cases + 100*6*20*5% cases )

= 369,000 pounds

Rice Lamb = 10 pounds per case * (73200 cases + 100*6*20*5% cases )

= 738,000 pounds

Salmon = 2 pounds per case * (73200 cases + 100*6*20*5% cases )

= 147,600 pounds

Vitamins = 1 pound per case * (73200 cases + 100*6*20*5% cases )

= 73,800 pounds

d. Direct materials purchases budget in dollars = 369000*15 + 738000*1.2 + 147600*24 + 73800*45

= $ 1,328,400

e. Manufacturing labor budget in dollars = 1 hours per batch * 6 batches per day * 20 days per month * 6 months * ($ 18 per hour for ingredient preparation + $ 24 per hour for cooking and canning ) * 2 workers

= $ 60,480

2. The business requires an investment of $ 1,328,400 + 60,480

= $ 1,388,880 over six months.

This translates to monthly investment of $ 231,480

Therefore $ 50,000 investment is too small to begin with.

8 0
3 years ago
Consider an economy made up of 100 people, 60 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. Th
zalisa [80]

Answer:

The number of unemployed persons is 15​ if we assume the person who are looking for work are NOT “unemployed”

The number of unemployed persons is 25​ if we understand “looking for work” is “unemployed currently”

Explanation:

If we assume the person who are looking for work are NOT “unemployed” then:  

Total 100 people  = 60 of whom hold jobs + and 15 of whom are retired + 10 of whom are looking for work  + unemployed persons  

⇒ unemployed persons = 100 – 60  - 15 – 10 = 15

However, it’s better to understand “looking for work” is “unemployed currently”, then  

Total 100 people  = 60 of whom hold jobs + and 15 of whom are retired + unemployed persons (including whom looking for work)

⇒ unemployed persons = 100 – 60  - 15 = 25

8 0
3 years ago
Read 2 more answers
An effective marketing mix for the product industry is the _____.
Natasha_Volkova [10]

Answer:4

Explanation:

4 0
3 years ago
The market supply curve indicates the rev: 05_10_2018 Multiple Choice maximum prices that buyers are willing and able to pay for
Yakvenalex [24]

Answer:

The market supply curve shows the minimum prices that all the sellers in the market will be willing to accept for the product.

Explanation:

The market supply curve of a product is the summation of individual supply curves. It represents the minimum acceptable prices of the product that all the firms in the market will be willing to accept.  

The market supply curve is an upward line representing the law of supply. The law of supply states that other things being constant the supply of a product will be directly related to its price. this means that with an increase in the price level, the output level will increase as well.

4 0
3 years ago
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