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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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If there are important external benefits associated with the consumption of a product:_______.

pentagon [3]

Answer:

C. the market demand curve understates the relative importance of the product and resources are therefore underallocated to its production.

Explanation:

Positive external benefits refer to third party positive side effects, above & beyond private marginal benefit to the concerned consumer.

Eg : Education - Its consumption not only affects the concerned person, but the positive trickle down to the people & society around.

Personal consumption decisions are based on : equalisation - of private marginal benefit (demand) curve & private marginal cost curve. However, goods having positive external benefits have real marginal benefit curve increased over private benefit curve, by the extent of extra marginal social benefit.

So, market demand (based on private marginal benefit) curve understates the importance of product, and resources are therefore underallocated to its production (due to undervaluation of demand).

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2 years ago

You wish to make a deposit and have these bills: 11 ones, 4 fives, 4 tens, and 4 twenties. You also have 6 nickels, 12 dimes, an

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Answer:

$264.00

Explanation:

Calculation to determine What will you enter on the NET DEPOSIT line

First step is to calculate the Total deposit checks

Total deposit checks = $72.50 +$65.25

Total deposit checks= $137.75

Second step is to add up the amount she has in the account.

6 ones = $11

4 fives = $20

4 tens = $40

4 twenties = $80

6 nickels = $0.30

12 dimes = $1.20

15 quarters = $4.00

Total 156.5

Now let calculate What will you enter on the NET DEPOSIT line

NET DEPOSIT line=($137.75+156.5)

NET DEPOSIT line=$294.25

NET DEPOSIT line=$294.00

Therefore What will you enter on the NET DEPOSIT line is $294.00

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2 years ago

An analysis of stockholders' equity of Hahn Corporation as of January 1, 2010, is as follows:

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Answer:

Additional paid-in capital is $904,200

Explanation:

Number of shares, issued and outstanding = 93,000 shares

Acquired 2,460 shares of its stock for $75,000.

Sold 2,000 treasury shares at $35 per share.

Sold the remaining 460 treasury shares at $20 per share.

i) Acquired 2,460 shares of its stock for $75,000.

= Treasury Stock Dr $75,000

ii) Sold 2,000 treasury shares at $35 per share.

Treasury Stock (2,000 × $35) = Dr $70,000

iii) Sold the remaining treasury shares at $20 per share.

Treasury Stock (460 × $20) = Dr $9,200

Total Treasury Stock = $75,000 - $70,000 - $9,200

= ($4,200)

Paid in Cap-tresury stock= 10,000-5000=5000

Additional Paid in capital = Paid in Capital - treasury stock

= 900,000 + 4,200 = $904,200

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3 years ago

Shamrock enters into an agreement with Traveler Inc. to lease a car on December 31, 2016. The following information relates to t

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Answer:

Explanation:

The Shamrock journal Entry book for 2016, 2017 and 2018 as well as the other steps required to solve this question can be found in the attached file. Please kindly go through it.

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3 years ago

Presented below are three independent situations:

Blababa [14]

Answer:

Explanation:

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Dr Bonds Payable $250,000

Dr Loss on Redemption of bonds $25,500

Cr Discount on Bonds Payable $20,500

Cr Cash $255,000

Supporting calculations:

Discount on Bonds Payable = 250,000 - 229,500 = $20,500

Cash = $250,000*102/100 = $255,000

Loss on redemption of bonds = $255,000+$20,500-$250,000 = $25,500

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Dr Discount on Bonds Payable $3,500

Cr Gain on Bond Redemption $9,500

Cr Cash $194,000

Supporting calculations:

Discount on Bonds Payable = 200000-196500 = $3500

Cash = 200000*97% = $194,000

Gain on Bond Redemption = $200,000 + $3,500 - $194,000 = $9,500

31 Dec

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Cr Common Stock $6000

Cr Paid in capital in excess of par-Common Stock $24000

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3 years ago