Answer: Internal control system are required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is traded on an exchange (a public company).
Explanation:
Internal controls are the procedures mechanisms and rules implemented by a business to ensure the integrity of its accounting and financial information, promote accountability, and also prevent fraud.
Besides complying with regulations and law and hindering employees from commiting fraud or stealing assets, internal controls can improve operational efficiency through the improvement in the timeliness and accuracy of financial reporting.
Internal controls are a vital business function for every company in the United States since the accounting scandals that occurred in the early 2000s. The Sarbanes Act of 2002 was to improve accuracy of corporate disclosures and protect investors from fraudulent activities.
Answer:
(A) Interest coverage charge ratio= 6.21
(B) Fixed charge coverage = 2.84
(C) Profit margin ratio= 8.57%
(D) Total assets turnover= 1.55
(E) Return on assets= 13.26%
Explanation:
(A) The Interest coverage charge ratio can be calculated as follows= EBIT/Interest expense
= 45,300/7,300
= 6.21
(B) The fixed charge coverage can be calculated as follows
= income before fixed charge + interest/fixed charges + interest
= 45,300+13,300/7,300+13,300
= 58,600/20,600
= 2.84
(C) The profit margin ratio can be calculated as follows
= Net income/sales × 100
= 22,800/266,000 × 100
=0.0857 × 100
= 8.57%
(D) The total assets turnover can be calculated as follows
= Sales/total assets
= 266,000/172,000
= 1.55
(E) The return on assets can be calculated as follows
= Net income/Total assets × 100
= 22,800/172,000 × 100
= 0.13255×100
= 13.26%
I think the phase that served that purpose would be: <span>the Support and Security Phase
support and security phase is important because customers who unfamiliar with the products tend to face some difficulties in the beginning of their interaction with the production which prevents them to experiencing the maximum value of the product.</span>
