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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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Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $69,200. The company's beginning merchand
Leya [2.2K]

Answer:

$82,400

Explanation:

Cost of goods sold = beginning merchandise inventory + purchases - ending merchandise inventory.

$69,200 = $15,600 + purchases - $28,800

Purchases = $82,400

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$100 compounded annually for two years at 3% interest would provide the investor with how much of a return?
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What is not an example of money?
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A listing on eBay featured a refurbished iMac desktop computer; interested buyers all ranged in age from teenagers to adults wit
Hatshy [7]

Based on the ages of those <em>showing interest</em>, these buyers were likely from the generational cohort of:

  • Gen Y

<h3>What is an Age Group?</h3>

This refers to the group of people who are of similar age ranges which were born during a particular period and today we can say some are Millennials, Gen Z, etc.

With this in mind, we can see that based on the eBay listing, there was the listed sale for an item and because the interested buyers were from an age group which was made up of teenagers, we can state that they were the Gen Y.

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4 0
2 years ago
During 2018, TRC Corporation has the following inventory transactions.
Soloha48 [4]

Answer:

Results are below.

Explanation:

Giving the following information:

Jan. 1 Beginning inventory 48 $40 $1,920

Apr. 7 Purchase 128 42 5,376

Jul. 16 Purchase 198 45 8,910

Oct. 6 Purchase 108 46 4,968

For the entire year, the company sells 427 units of inventory for $58 each.

Ending inventory units= 482 - 427= 55

<u>1)</u>

<u>Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units remaining in inventory.</u>

Ending inventory= 55*46= $2,530

COGS= 48*40 + 128*42 + 198*45 + 53*46= $18,644

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,644= $6,122

<u>2)</u>

<u>Under the LIFO (last-in, first-out) method, the ending inventory is calculated using the cost of the firsts units remaining in inventory.</u>

<u></u>

Ending inventory= 48*40 + 7*42= $2,214

COGS= 108*46 + 198*45 + 121*42= $18,960

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,960= $5,806

<u>3)</u>

<u>First, we need to calculate the weighted-average cost:</u>

weighted-average cost= (40 + 42 + 45 + 46) / 4= $43.25

Ending inventory= 55*43.25= $2,378.75

COGS= 427*43.25= $18,467.75

Revenue= 427*58= $24,766

Gross profit= 24,766 - 18,467.75= $6,298.25

6 0
2 years ago
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