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2 years ago

An analysis of the income statement revealed that interest expense was $100000. Waterway Company's times interest earned was

Business

1 answer:

Lelechka [254]2 years ago

8 0

Answer: 8.3

Explanation:

The times interest earned is used to estimate the ability of a company to pay its debt payments using income from operations.

It is calculated by the formula:

= Earnings before interest and tax / Interest expense

Earnings before interest and tax:

= Earnings before tax + Interest expense

= 730,000 + 100,000

= $830,000

Times interest earned:

= 830,000 / 100,000

= 8.3

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Difference between an <br>Architect and Engineer

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An architect focuses more on the design of the building while an engineer focuses on more technical and structural things

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2 years ago

For each of the following, state whether the events created are mutually exclusive and whether they are collectively exhaustive.

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Answer:

Explanation:

- mutually exclusive (ME): If one event occur the other doesn't

- collectively exhaustive (CE): one of the events must occur

a. Undergraduate business students were asked whether they were sophomores or juniors: ME

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3 years ago

This refers to dividing responsibility among specific units or departments.

Julli [10]

I think this could be division of labour.

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3 years ago

Chance to win 50 points

Elenna [48]

Answer:

2nd place

Explanation:

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2 years ago

Read 2 more answers

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6300, $11,300, and $

sladkih [1.3K]

Answer:

$27,642.86

Explanation:

To determine the price Marko will pay today to buy ABC Co, one has to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow in year one = $6300

Cash flow in year two = $11,300

Cash flow in year three = $17,500

I = 11%

Present value = $27,642.86

To find the present value using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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2 years ago