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
Inessa [10]
4 years ago
5

Creighton Company reported the following on the company's income statement for the year. Interest expense $600,000 Income before

income tax expense 4,200,000 What is the times interest earned ratio? a.7.0 b.8.0 c.6.0 d.None of these choices are correct.
Business
1 answer:
avanturin [10]4 years ago
8 0

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Interest expense= $600,000

Income before income tax expense= 4,200,000

To calculate the interest earned ratio we need to use the following formula:

Times interest earned ratio= earnings before interest and tax/ interest rate

Times interest earned ratio= 4,200,000/600,000= 7

You might be interested in
Justice Enterprises is evaluating the purchase of a new computer net system would cost $24,000 and have a useful life of Syears.
Sergeeva-Olga [200]

Answer:

closest to: B) $7777

Explanation:

NPV ( net presetn value) cashflow - investment

<u>cost savings present value (ordinary annuity):</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

C   $8,500

time         5 years

rate  0.12

8500 \times \frac{1-(1+0.12)^{-5} }{0.12} = PV\\  

PV $30,640.5977  

salvage value present value:

\frac{salvage}{(1 + rate)^{time} } = PV  

Salvage  $2,000  

time   5

rate  0.12

\frac{2000}{(1 + 0.12)^{5} } = PV  

PV   1,134.85  

NPV: 30,640.60 + 1,134.85  - 24,000 = 7,775.45

4 0
3 years ago
An interview begins _____.
Zina [86]
When the first question is asked. Up until then you could decide to walk away.
7 0
3 years ago
Read 2 more answers
Shen manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday,
IRINA_888 [86]

Answer:

The correct answer is option b.

Explanation:

Shen is working in a country where the inflation rate is high.  

He gets a salary every two weeks.  

After receiving his salary he immediately goes out and buys all the goods he is going to need over the next two weeks.  

He converts the remaining salary in a more stable currency.  

He does this in order to prevent his salary from losing purchasing power.  

This effort that he is making to prevent his real income from losing value is called the shoe-leather cost of inflation.  

The shoe-leather cost can be defined as the cost of time and effort made to prevent the cash holdings from losing their value.

3 0
3 years ago
Say the average increase in pay for non-union workers in 2011 is 2% across the U.S. If a workers' union successfully negotiates
4vir4ik [10]

Answer:

cut back the expansion of labor as a trade off between higher salaries but fewer workers.

Explanation:

If the employer believes that he is paying above average wages, he will try to reduce labor costs. Since unions are specially good in preventing massive layoffs, the other alternative left for the employer is to not hire new employees, or reduce the number of new employees that he expected to hire.

6 0
3 years ago
Amounts collected by the lender and held in a trust or impound account for future payment are called what?
Aleonysh [2.5K]

The amounts collected by the lender and held in a trust or impound account for future payment are called Reserves.

Reserves are earnings that have been appropriated or set apart, for use for a selected cause in addition down the road. A few examples of specific reserves include capital redemption reserves, contingency reserves, debenture redemption reserves, and dividend equalization reserves. each of these reserves has a particular purpose, but, if important, specific reserves can every so often be used for bills that are not their meant functions.

Reserves may be funded by way of annual working surpluses, or thru a funding plan. These price ranges are considered to be "savings bills" so no fees can be charged without delay to them; the simplest transfer object codes must be utilized to reserve money owed.

A lender is a man or woman, a set (public or non-public), or an economic institution that makes finances available to a person or business with the expectation that the price range could be repaid. Compensation will include the charge of any hobby or costs.

Learn more about economic institutions here brainly.com/question/4230044

#SPJ4

5 0
2 years ago
Other questions:
  • A researcher uses a regression equation to predict electric bill costs (in dollars) based on the age of the home (in years). The
    5·1 answer
  • Laura Pine worked as a welder for BCD Company for ten years before it changed its rigid tuition reimbursement policy. This year,
    15·1 answer
  • In a tiny village, on the coast of South America, early inhabitants used sea shells, as money. Some of these shells were very be
    11·1 answer
  • Henderson is a local automobile salesperson. He earns 6% commission on all of his automobile sales. Last month, he earned $9,900
    5·1 answer
  • How to create a social media platform
    5·2 answers
  • An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result
    13·1 answer
  • Third-party beneficiary:
    6·2 answers
  • Beginning inventory, purchases, and sales for Meta-B1 are as follows: July 1 Inventory 100 units at $400 12 Sale 70 units 23 Pur
    12·1 answer
  • Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $
    12·1 answer
  • Firestone owns its manufacturing sites as well as retail stores that sell its tires. Firestone exemplifies a(n)
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!