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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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The cross-price elasticity of demand measures the a. percentage change in the quantity demanded of one good in one location divi

LenaWriter [7]

Answer:

d. percentage change in the quantity demanded of one good divided by the percentage change in the price of another good.

Explanation:

Price-demand elasticity measures the demand sensitivity of a good when a change in the price of another good occurs. For example, what happens to the demand for bread when the price of butter varies? This depends on the cross elasticity of demand since these goods tend to be complementary.

The price elasticity of cross demand between two goods is easily calculated by a formula where the numerator is the change in the quantity of a good and the denominator is the percentage change in the price of the complementary good.

If the calculation of elasticity is greater than 1, it means that the amount demanded for bread is sensitive (elastic) to the price of butter and tends to vary sharply. If the result is between 0 and 1, the demand is inelastic, that is, the amount of bread demanded will not change considerably when the price of butter varies. If the calculation is equal to 1, then the demand for bread varies perfectly with the price of butter.

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3 years ago

A bond has a face value of $1,000, a coupon of 4% paid annually, a maturity of 30 years, and a yield to maturity of 7%. What rat

Lelechka [254]

Answer:

-11.8%

Explanation:

the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:

$price=\frac{principal*coupon}{(1+i)^{1} }+ \frac{principal*coupon}{(1+i)^{2} } \frac{principal*coupon}{(1+i)^{3} }+...+\frac{principal+principal*coupon}{(1+i)^{n} }$

so in this particular case that one year later there are 29 years to maturity so we have:

$price=\frac{1,000*0.04}{(1+0.08)^{1} }+ \frac{1,000*0.04}{(1+0.08)^{2} } \frac{1000*0.04}{(1+0.08)^{3} }+...+\frac{1,000+1,000*0.04}{(1+0.08)^{30} }$

$price=553.6638$

so as we have a higher rate the investment has the next return:

$return=\frac{553.66}{627.73} -1$

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4 0

2 years ago

The adjusted trial balance of Lopez Company shows the following data pertaining to sales at the end of its fiscal year, October

Oksana_A [137]

Answer:

A) Prepare the revenues section of the income statement.

Lopez Company

Income Statement for the year ended MM DD, YY

Sales Revenue $852,850

-Sales Returns and Allowances $24,030

-Sales Discounts $12,760

= Net Sales $816,060

B) Prepare separate closing entries for

(1) sales

Dr. Cr.

Sales $852,850

Income Summary $852,850

(2) the contra accounts to sales.

Dr. Cr.

Income Summary $36,736

Sales Returns and Allowances $24,030

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6 0

3 years ago

A math formula in economics

krok68 [10]

It's C because 1-.15 is .85 then 1/.85 rounds to 1.18

5 0

3 years ago

You are currently earning 12% (APR) compounded semiannually. Your investment company is switching all accounts to daily compound

Sav [38]

Answer:

The rate that will give the same effective annual rate of return is 0.033%.

Explanation:

a) Data and Calculations:

APR = 12%

Semi-annual compound rate = 6% (12/2)

Assumed calendar days in a year = 360 days

Effective daily rate of return = 12%/360 = 0.033%

b) The conversion of semi-annual compounding to daily compounding results in reduced rate of return. In this case, we assume that there are 360 days in a year. Since the APR = 12%, it means that the daily rate of return will be 12%/360, which is 0.033%.

6 0

3 years ago