Due Today!!!

Using the income statement for Times Mirror and Glass Co., compute the following ratios:

Umnica [9.8K]

Answer:

(A) Interest coverage charge ratio= 6.21

(B) Fixed charge coverage = 2.84

(C) Profit margin ratio= 8.57%

(D) Total assets turnover= 1.55

(E) Return on assets= 13.26%

Explanation:

(A) The Interest coverage charge ratio can be calculated as follows= EBIT/Interest expense

= 45,300/7,300

= 6.21

(B) The fixed charge coverage can be calculated as follows

= income before fixed charge + interest/fixed charges + interest

= 45,300+13,300/7,300+13,300

= 58,600/20,600

= 2.84

(C) The profit margin ratio can be calculated as follows

= Net income/sales × 100

= 22,800/266,000 × 100

=0.0857 × 100

= 8.57%

(D) The total assets turnover can be calculated as follows

= Sales/total assets

= 266,000/172,000

= 1.55

(E) The return on assets can be calculated as follows

= Net income/Total assets × 100

= 22,800/172,000 × 100

= 0.13255×100

= 13.26%

8 0

3 years ago

In a macroeconomic context, choose the best definition for the term velocity. The rate at which the aggregate price level increa

N76 [4]

Answer:

The rate at which money circulates through an economy.

Explanation:

In Macroeconomics, the term velocity refers to the speed at which money circulates in an economy, and it is a variable in a fundamental macroeconomic equation, the quantity theory of money equation:

M x V = P x T

Which states that the price of goods and services is equal to the amount of money in an economy, or its money supply (M) multiplied by the Velocity of circulation of money, which is in turn equal to price (P) multiplied by the number of transactions (T).

7 0

3 years ago

What steps should e taken if the results do not support the hypothesis?

lys-0071 [83]

More information please

6 0

3 years ago

Fred Hash worked for Van Stavern Construction Co. as a field supervisor in charge of constructing a new plant facility. Hash ent

Eduardwww [97]

Answer:

Ratification by Principal One of the criteria for enactment is that all material truths involved in the transaction must be known to the Principal. Van Stavern was not aware of Hash's behaviour.

He did not realize that somehow the steel is being shipped under his name, and that the shipments were being billed him directly. Unlike liability through obvious authority, approval by the principal is a positive act by which he or she acknowledges the agent's illegal actions.

Just a principal would ratify; thus, Van Stavern was not directly imputed to information by the invoices and checks signed by Van Stavern's workers.

The court stated that the use of corporate checks was further proof that Van Stavern regarded the expenditures as business, not private. So Van Stavern could not be held personally liable.

Remember that on Sutton Steel that's not excessively harsh. Sutton understood it was working with a building company and did not seek to get the personal approval of the contract from Van Stavern.

Lawfully, Sutton's agreement in this case is called an unaccepted offer which can be withdrawn at any time.

6 0

3 years ago

A coffee distributor needs to mix a(n) Costa Rican coffee blend that normally sells for $9.50 per pound with a Kenya coffee blen

snow_tiger [21]

Answer:

5,11 pounds of Costa Rican coffee and 64,89 pounds of Kenya coffee

Explanation:

First, we need to know the proportion of every coffee in the mix trying with different percentages until getting the result of $13,49

($9,50*25%)+($13,80*75%)=$12,73

($9,50*10%)+($13,80*90%)=$13,37

($9,50*7,5%)+($13,80*92,5%)=$13,48

($9,50*7,3%)+($13,80*92,7%)=$13,49

So, the percentage of Costa Rican coffee is 7,3% and Kenya coffee is 92,7%

And we can get the pounds required to get 70 pounds

70*7,3%=5,11

70*92,7%=64,89

We need 5,11 pounds of Costa Rican coffee and 64,89 pounds of Kenyan coffee to create 70 pounds of mixed coffee that can sell for $13,49 per pound

8 0

4 years ago