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2 years ago

Using the income statement for Times Mirror and Glass Co., compute the following ratios:

Business

1 answer:

jarptica [38.1K]2 years ago

4 0

Answer:

a. 9.15 times

b. 4.61 times

c. 31.52%

d. 1.08 times

e. 20.88 %

Explanation:

Note : I have attached the full question as image below.

Interest Coverage = Earnings Before Interest and tax ÷ Interest expense

= $85,100 ÷ $9,300

= 9.15 times

Fixed Charge Coverage = EBIT + Lease Payments ÷ Interest Payments + Lease Payments

= $85,100 + $11,700 ÷ $9,300 + $11,700

= 4.61 times

Profit margin = Operating Profit / Sales x 100

= $85,100 / $270,000 x 100

= 31.52%

Total asset turnover = Sales ÷ Total Assets

= $270,000 ÷ $249,000

= 1.08 times

Return on assets (investment) = Earning Before Interest after Tax / Total Assets x 100

= ($45,480 + $9,300 x 70%) / $249,000 x 100

= 20.88 %

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Answer:

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3 years ago

Tune Store reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end invento

Genrish500 [490]

Answer:

inventory impairment/cost of good sold (p/l) $500

Explanation:

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3 years ago

The following information relating to a company's overhead costs is available. Actual total variable overhead $ 73,000 Actual to

Andrei [34K]

Answer: $2,000 favorable

Explanation:

Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead

Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour

= 30,000 * 2.50

= $75,000

Total variable overhead variance = 75,000 - 73,000

= $2,000 favorable

Favorable because the actual amount was less than the budgeted one.

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3 years ago

Porter Company uses standard costs for its manufacturing division. Standards specify 0.1 direct labor hours per unit of product.

kkurt [141]

Answer:

1,370.85 Unfavorable

Explanation:

Standard rate :

= Budgeted variable overhead costs ÷ Budgeted direct labor hours

= $13500 ÷ 640

Direct labor hours = $21.09 per direct labor hour

Standard time to produce goods :

= Budgeted direct labor hours ÷ Production volume

= 640 ÷ 6,400

= 0.10 hours

VOH Efficiency Variance

= ( SH − AH ) × SR

where,

SH are standard direct labor hours allowed

AH are the actual direct labor hours

SR is the standard variable overhead rate

(SH − AH ) × SR

= [(4,200 × 0.10) - 485] × $21.09

= (420 - 485) × $21.09

= 1,370.85 Unfavorable

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3 years ago

A city street is a. always a public good, whether or not it is congested. b. a public good when it is congested, but it is a com

anyanavicka [17]

Answer:

a common resource when it is congested, but it is a public good when it is not congested.

Explanation:

We live in different areas, across city streets, with roads and they can either be public goods or common resources. Now, when the streets are not congested, it simply means that an individual can freely access the areas without that affecting any other person. In this simple case, the use by one person is not in rival consumption and so the streets are said to be a public good. But when the area is fully congested, people might find it difficult to move around through the areas. The use of the areas could cause negative externalities. Because the place would be overcrowded, people can only move at a slow pace. In this case, the street are said to be a common resource.

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3 years ago

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