Answer:
Firm's cash coverage ratio = 9.64
Explanation:
We know,
Cash coverage ratio = Cash and Cash equivalents ÷ current liabilities
However, as there is no such information regarding cash and cash equivalents and liabilities, we have to use alternative formula,
Firm's cash coverage ratio = (EBIT + Depreciation Expense) ÷ Fixed charges
Given,
EBIT = $400,000
Depreciation Expense = $24,000
Fixed charges = $44,000
Therefore,
Firm's cash coverage ratio = ($400,000 + 24,000) ÷ $44,000
Firm's cash coverage ratio = $424,000 ÷ $44,000
Firm's cash coverage ratio = 9.64
Answer:
The importer accepts this price, so his bank will debit the importer's account in the amount of $500,000.
A. debit, $500,000
Explanation:
Bank debit is a bookkeeping term for realization of the reduction of deposits held by bank customers. A bank debit occurs when a bank customer uses the funds in their account, therefore reducing their account balance.
Euros 512100
dólar 1 1,0242 euros
x 512100 euros
x= 500.000
Answer:
$960
Explanation:
For computing the accumulated depreciation, first we have to compute the depreciation expense which is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($9,600 - $0) ÷ (5 years)
= ($9,600) ÷ (5 years)
= $1,920
This is a full year depreciation but we have to find out for June 30,2017 i.e 6 months
= $1,920 ÷ 12 months × 6 months
= $960
The same is recorded as an accumulated depreciation