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DiKsa [7]
2 years ago
12

Given the following information, calculate the debt coverage ratio of this commercial loan:

Business
1 answer:
pishuonlain [190]2 years ago
3 0

Answer:

1.50

Explanation:

The debt coverage ratio shows the extent to which the property is generating income in a bid to pay its debt service charge, it is computed using the below DSCR formula

DSCR= net operating income (NOI)/Debt service

net operating income (NOI)=$150,000

Debt service=interest expense or finance charge in the year=$100,000

DSCR=$150,000/$100,000

DSCR=1.50

The property in question is generating income that  is 1.5 times its debt servce yearly

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Kijijo Auctions runs an online auction company. Its end-of-year financial statements indicate the following results. Total asset
katrin [286]

Answer:

40%

Explanation:

Total assets. $240,000

Less total liabilities ($130,000)

$110,000

Less common stock ($24,000)

Retained earnings at end $86,0000

Less Retained earnings at the beginning ($29,000)

Addition to retained earnings $57,000

Add dividends $6,400

Net profit earned $63,400

Add expenses $94,000

Revenue. $157,400

Therefore, company's net profit margin expressed as a percentage = Net profit earned / Revenue

= (63,400/157,400) × 100

= 40%

6 0
3 years ago
True or False: A tax cut that will last for only one year will have a greater impact on aggregate demand than a tax cut that is
gavmur [86]

A tax cut that will last for only a year will not have a huge effect on the aggregate demand as the aggregate demand increases only when the tax cut is permanent.

The given statement is false.

<h3>What is a tax?</h3>

A tax is a liability imposed on the taxpayer to pay a specified sum to the government based on the income they have earned in the previous year.

When the cutting of taxes becomes permanent in the country, then the citizens can start to acquire more which will increase the spending. The families will expect that the tax cuts are for the longer term which now induces them to buy and spend more and also act as an addition to their incomes. This whole impact would eventually lead to rising in aggregate demand.

Therefore, the demand increases when the tax cuts are permanent rather than when tax cuts are for only one year.

Learn more about the tax cut policies in the related link:

brainly.com/question/13924294

#SPJ1

5 0
2 years ago
what might be the outcome of raising the fees and requiring more paper work in order to start a corperation? what would happen i
Pie
The outcome of raising fees and requiring more paper work to start a corporation would be that there would be less corporations and, the opposite would happen if fees were lowered and application possesses were simpler, hope this helps
8 0
3 years ago
A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentag
olga_2 [115]

Answer:

A partnership's allocations of income and deductions to the partners are required to be proportionate to the partners' percentage ownership of partnership profits in order to meet the substantial economic effect tests.

True

Explanation:

Equity and equality must be put in place as a yardstick to allocate such which would bring a common ground for both parties.

6 0
3 years ago
when setting up a product/service item in quick books which box do I check to assign a preferred vendor
sasho [114]
To create service items in QuickBooks Desktop, click the “Item” button in the lower-left corner of the list window. Then select the “New” command from the pop-up menu. In the “New Item” window, select “Service” from the “Type” drop-down. Enter a name for the service into the “Item Name/Number” box.
6 0
2 years ago
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