1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Inga [223]
2 years ago
5

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:

<em>Note : I have attached the full question as image below.</em>

<em></em>

<em>Interest Coverage = Earnings Before Interest and tax ÷ Interest expense</em>

                               = $85,100 ÷ $9,300

                               = 9.15 times

<em>Fixed Charge Coverage = EBIT + Lease Payments ÷ Interest Payments + Lease Payments</em>

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

                                        = 4.61 times

<em>Profit margin = Operating Profit / Sales x 100</em>

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

                      = 31.52%

<em> Total asset turnover = Sales ÷ Total Assets </em>

                                   = $270,000 ÷ $249,000

= 1.08 times

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

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

                                                  = 20.88 %

You might be interested in
Berry Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2012, the f
mojhsa [17]

Answer:

$285,000

Explanation:

Please see attachment

5 0
2 years ago
What is is the most important factor in what a nation produces and trades
Serga [27]
 <span>The most important factor is currency exchange rate.</span>
5 0
3 years ago
Fundamental analysis is likely to yield best results for _______.A. NYSE stocksB. neglected stocksC. stocks that are frequently
TiliK225 [7]

Answer:

<u>C. stocks that are frequently in the news</u>

Explanation:

  • It is an accounting ad financial analysis usually analyzed by the business assets, liabilities, and earnings. Related to the interest-earning and the production, earnings, employment, GDP, housing and manufacturing. conducting a company's stock valuation.
  • And is used to find out the internist's values of share. It often includes the industrial, economic, and company analysis. The port foils style includes Buy and holds investors, value investors.
6 0
2 years ago
If total deposits in bank A total $15 million and the required-reserve ratio is 10 percent, than excess reserves equal:_______
victus00 [196]

Answer:

$13.5 million  

Explanation:

Fractional Banking System- This is banking system where banks are required by the central banking authority to keep a certain percentage of their total deposit as the minimum reserve which they cannot lend out.

The idea behind this requirement is to help manage liquidity risk- a situation where a bank does not have enough cash to meet its deposit customers demand.

Required-reserve ratio: The minimum percentage that banks are required to keep as reserve is known as the required-reserve ratio. In this question, it is given as 10%. Multiply this ratio by the total deposit and you will get the required reserve in dollar amount.

Therefore the required reserve for this bank = 10% ×$15 million= $1.5 million

Excess reserve; Excess reserve is the balance of the total deposit over and above the required reserve. The bank can lend and create loan asset from this balance.

It is calculated as = Total deposit - Required reserve

So we apply this to our question

        Excess reserve = $15 million - (10% × $15 million)

                               = $15 million - $1.5 million

                              = $13.5 million

7 0
3 years ago
Which of the following statements is incorrect when allocating service department costs to operating departments?
Whitepunk [10]

Option C is incorrect when allocating service department costs to operating departments.

<u>Explanation: </u>

Typically, fixed costs are not assigned to working departments; however, they have to be absorbed by the service. This statement is incorrect in the service dept. Cost to Operating dept.

The reciprocal method assigns the cost of services to operating departments and other departments. The reciprocal costs are identified and the costs are assigned to each other and to services offered by each service department.

For example, if Service Department A requires certain services of Service Department B, the cost allocation system would not include these services. Since these services are not delegated to other departments, some auditors assume that the direct approach is not right.

6 0
3 years ago
Other questions:
  • societies use machinery and energy sources rather then humans and animals for production and __________ societies use the creati
    9·1 answer
  • ) suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves ar
    5·2 answers
  • Asif, a member of a local baseball team, broke his bat during a practice match. With the final match scheduled for the next day,
    9·1 answer
  • Tanya spoke so fast during her speech that it was difficult to understand her.
    5·2 answers
  • Affan Chawdry has monthly net income of $1,050. He has a house payment of $450 per month, a car loan with payments of $375 per m
    10·1 answer
  • The present value of a lump sum future amount:__________
    6·1 answer
  • X minus Industries manufactures 3minusD printers. For each​ unit, $ 3 comma 500 of direct material is used and there is $ 2 comm
    14·1 answer
  • 2) Can a caterer use leftover foods donated to a charity as a charitable tax deduction? Why or why not?
    6·1 answer
  • In the context of the elements of scientific management, time and motion studies focus on: group of answer choices designing dif
    7·1 answer
  • Which training method would be most effective for training employees about ethical dilemmas and ethical decision making?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!