Answer:
5.1
Explanation:
Times interest earned ratio can be described as the ability of an organisation to make their debt payment within the stipulated period of time
The formular for calculating Times interest earned ratio is
= Earnings before interest and tax/Total interest payable
The interest exsense can be calculated as follows
Interest expense= $826,000×10/100
= $82,600
Since the income generated before income tax is $342,000
The time interest earned ratio is calculated as follows
= $342,000+ $82,600/$82,600
= $424,600/$82,600
= 5.14
= 5.1 ( rounded to 1 decimal place)
Hence the Times interest earned ratio is 5.1
Hey ur answer should be C
I hope this helped
Answer:
The corresponding budgets in column B from which dollar amounts are transferred directly is paired correctly with the budgets listed in Column A.
as shown in the explanation section below
Explanation:
Solution
Given that
COLUMN A COLUMN B
1.Budgeted Income statement – (e)Sales Budget
2.Budgeted Balance sheet – (d)Payables Budget
3.Flow Cash Budget – (a)Direct materials budget
4. cost of goods sold – (b)cost of goods sold Budget
5.production Budget – (c)production Budget
Note: This is the complete question to this example.
Complete question
Identify the budgets in Column B from which dollar amounts are transferred directly in constructing the budgets listed in Column A.
Column A
1. Budgeted income statement
2. Budgeted balance sheet
3. Cash flow budget
4. Cost of goods sold budget
5. Production budget
Column B
a. Direct materials budget
b. Cost of goods sold budget
c. Production budget
d. Payables budget
e. Sales budget
f. Budgeted income statement
Answer:
a. Compute the cost of retained earnings (Ke)
$60 = $3 / (Ke - 8%)
Ke - 8% = $3 / $60 = 5%
Ke = 13%
b. If a $5 flotation cost is involved, compute the cost of new common stock (Kn).
$60 (1 - $5/$60) = $3 / (Kn - 8%)
$55 = $3 / (Kn - 8%)
Kn - 8% = $3 / $55 = 5.45%
Kn = 13.45%
Flotation costs reduce the amount of money that the company receives for every new stock that it issues, therefore, it increases the cost of new stocks.
Answer:
$29.50
Explanation:
The computation of the contribution margin per unit is shown below:
Contribution margin per unit = Selling price per unit - Variable cost per unit
where,
Selling price per unit is $50
And, the variable cost per unit = $24 - $3.5 = $20.5
Now put these values to the above formula
So, the value would equal to
= $50 - $20.5
= $29.50 per unit