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charle [14.2K]
3 years ago
10

Balance sheet and income statement data indicate the following: Bonds payable, 10% $1,000,000 Preferred 5% stock, $100 par (no c

hange during the year 300,000 Common stock, $50 par (no change during the year 2,000,000 Income before income tax for year 350,000 Income tax for year 80,000 Common dividends paid 50,000 Preferred dividends paid 15,000 Based on the data presented above, what is the number of time bond interest charges were earned (round to one decimal point)
Business
1 answer:
dangina [55]3 years ago
7 0

Answer:

The Time interest earned ratio is 4.5

Explanation:

Given:

Bonds payable 10% in 2 years                                                   $1000000

Preferred 5% stock $100 par (no change during the year)      300000

Common stock, $50 par (no change during the year)             2000000

Income before income tax for year                                            350000

Income tax for year                                                                     80000

Common dividends paid                                                             50000

Preferred dividends paid                                                             15000

Time interest earned ratio is a measure of how a company is able to pay up its debts based on its income. It is the ratio of earnings before tax and interest to total interest expense.

Interest expense = $1000000 × 10% = $100000 × 0.1 = $100000

Therefore the earnings before tax and interest = Income before income tax for year + Interest expense = $350000 + $100000 = $450000

the earnings before tax and interest = $450000

Time interest earned ratio = earnings before tax and interest / Interest expense  = $450000 / $100000 = 4.5

The Time interest earned ratio =  4.5

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Fantom [35]

Answer:

The correct answer is letter "C": Mortgage payments.

Explanation:

Net Operating Income or NOI reflects income after operating expenses deducted but before income taxes and interest are deducted. If the result is a positive value it is called <em>Net Operating Income</em>. If the figure is negative, it is referred to as <em>Net Operating Loss</em>.

Net operating income is often used to calculate real estate income, such as residential properties or commercial properties. <em>NOI is calculated by determining the Gross Operating Income (Gross potential income minus vacancy and credit loss) and subtracting the operating expenses (maintenance, fees, and insurance). </em>

<em> </em>

Thus, <em>mortgage payments are not considered in the calculation of the NOI.</em>

6 0
3 years ago
Customer value can be defined as Multiple choice question. obtaining a product or service at the lowest price possible, regardle
Paladinen [302]
That’s crazy math right there am I right
3 0
3 years ago
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company
skad [1K]

Answer:

a. $13

b. $20,625 Unfavorable

Explanation:

a. Computation of overhead volume variance is shown below:-

Variable overhead rate = Variable overhead cost ÷ Expected standard hours

= $275,000 ÷ 25,000

= 11 direct labor hour

Fixed overhead rate = Productive capacity ÷ Expected standard hours

= $50,000 ÷ 25,000

= $2 direct labor hour

Total overheard rate = Variable overhead rate + Fixed overhead rate

= $11 + $2

= $13

b. The computation of overhead controllable variance is shown below:-

Variable overhead cost = Overhead rate × Standard hours

= $11 × 21,875

= $240,625

Fixed overhead cost = Overhead rate × Standard hours

= $2 × 21,875

= $43,750

Total overhead cost = $13 × 21,875

= $284,375

Actual result = $305,000

Variance = Actual result - overhead cost applied

= $305,000 - $284,375

= $20,625 Unfavorable

Working note:-

Standard direct labor hours = Actual units ÷ Standard hours

= 35,000 × 1.6

= $21,875

Standard units per hour = (Standard capacity × Expected production) ÷ Standard hours

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8 0
3 years ago
Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the classical method for computing probabil
nlexa [21]

Answer:

correct option is b.0.50

Explanation:

given data

computer shop = 100 customers

purchased computer = 25

solution

we know that past data does not affect the probability of next outcome

so when they buying computer or net

so here

probability of customer buy computer is = \frac{1}{2}  = 0.5

and

probability of customer not buy computer is = \frac{1}{2}  = 0.5

so here chance of buying as they buying or not buying is 50 %

so correct option is b.0.50

3 0
3 years ago
The managed care plan that is allowed to contract directly with employers to provide health care services is the?
andreev551 [17]

The managed care plan that is allowed to contract directly with employers to provide health care services is the health insurance.

<h3>What is managed care plan?</h3>
  • Health insurance comes in the form of managed care programs. They have agreements with hospitals and medical centers to provide members with care at lower costs.
  • These suppliers make up the network of the plan. The policies of the network will determine how much of your care the plan will cover.
  • Among the several categories of managed health care programs are: maintenance of health organization (HMO) preferred supplier company (PPO) Service location (POS)
  • The availability of numerous in-network providers, low costs, the provision of credentialed treatment, lower prescription costs, and low cost are some of the most frequently cited advantages of managed care systems.

Learn more about managed care plan here:

brainly.com/question/12446980

#SPJ4

8 0
1 year ago
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