Answer:
Company 4 has a times interest earned ratio of 14.3.
Explanation:
The times interest earned (TIE) ratio is a measure of a company's ability its ability to pay its debts based on its current income. Is an indication of a company's relative freedom from the constraints of debt
A higher TIE number shows that a company has enough cash after paying its obligations to continue to invest in the business.
In this particular case, it is company 4, because its TIE is the highest
Answer: 0.32 times
Explanation: Return on assets can be defined as the ratio under which companies are evaluated on the basis of total amount of assets investment. It is a ratio that evaluates the profitability of a company, it shows the ability of a company to generate revenue from the assets invested in it.
It can be computed as following :-
= 0.32 times
The company’s earnings per share would still be based on the
common shares outstanding of 9,500. This is because the 4,500 selling
transaction is not yet accounted for that last accounting period. Therefore,
Earnings per share = $33,250 / 9,500 shares
Earnings per share = $3.5 per share
Answer:
a. $14.7 million
b. $15.7 million
Explanation:
a. The asset retirement obligation (rounded) that should be recognized at the beginning of the extraction activities is:
Present Value of Cash Flows Expected From the Project / Asset Retirement Obligation at the Beginning = (0.60*10 + .40*30) * PVIF(7%,3 Years)
=(0.60*10,000,000 + 0.40 * 30,000,000) * 0.81630
= (6,000,000 + 12,000,000) * 0.81630
= 18,000,000 * 0.81630
= $14.7 million
b. The asset retirement obligation (rounded) that should be reported on the balance sheet one year after activities begin is:
Asset Retirement Obligation One Year After = Present Value of Cash Flows Expected From the Project*(1+.07)
= 14,700,000 * (1+0.07)
= 14,700,000 * (1.07)
= $15.7 million
Answer:
True
Explanation:
In a perfectly competitive market, all producers sell identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers. Market price is set by the forces of demand and supply.
If the seller attempts to set his own price and sets it above the market price, the seller would lose all its customers and make zero sales.
If the seller attempts to set his own price and sets it below the market price, the seller would make losses .
I hope my answer helps you.
