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zalisa [80]
3 years ago
5

Given the information below, calculate net income in the current period. Accounts Receivable$14,700 Rent Expense 7,500 Insurance

Expense 2,100 Common Stock 24,000 Service Revenue 28,300 Supplies 4,300 Equipment 21,600 Income Tax Expense 4,200 Multiple Choice $27,300. $29,200. $14,500. $10,200.
Business
1 answer:
denis-greek [22]3 years ago
8 0

Answer :

Net income = $14,500

Explanation :

Net income = Revenue from service - Income tax - Rent - Insurance  

Net income = $28,300 - $4,200 - $7,500 - $2,100

Net income = $14,500

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The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are
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Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha,  we need to do the following calculations

The interest amount  is

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The EBIT is

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And, the interest expense is $28,000

So, the TIE ratio is

= $228,000 ÷ $28,000

= 8.14 times

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