Answer:
Attached is the solution:
Answer: 2.61 times
Explanation:
Times Interest ratio = Earnings before Interest and Tax / Interest
Earnings before Interest and tax = Sales - Cost of goods sold - Depreciation expenses
= 594,000 - 255,330 - 67,900
= $270,770
Net Income = Addition to retained earnings + Total dividends paid
Net income = 80,300 + ( 27,500 * 1.64)
= $125,400
Earnings before tax = Net Income/ ( 1 - T)
= 125,400/ ( 1 - 0.25)
= $167,200
Interest = Earnings before interest & tax (EBIT) - Earnings before tax (EBT)
= 270,770 - 167,200
= $103,570
Times Interest ratio = 270,770 / 103,570
= 2.61 times
Answer:
c. To focus on establishing a brand name
Explanation:
Specialty products are products that people want to buy because they are unique and are from a certain brand they prefer. According to this, the answer is that in this case, the objective of the manufacturers of Caroline Perfumes would be to focus on establishing a brand name because that would create customers' loyalty and they would be willing to make an effort to buy the product.
Answer:
Trend Analysis helps to interpret the changes in account balances over certain period of time. Trends in percentages is presented in the table below.
* Excel solution is attached for your reference.
Explanation:
For Rotorua Product Ltd, data trends (in percentages) can be computed using the following formula:
Trend in % = (Current Year ÷ Base Year) × 100
where: Base Year is assumed to be Year 1
Year 1 Year 2 Year 3 Year 4 Year 5
Sales 100.0% 107.9% 112.0% 121.0% 127.7%
Current Assets
Cash 100.0% 132.5% 112.6% 90.1% 95.4%
Accounts receivable, net 100.0% 102.9% 107.1% 119.7% 136.8%
Inventory 100.0% 108.3% 104.2% 109.9% 113.6%
Total current assets 100.0% 108.1% 105.6% 111.8% 119.9%
Current liabilities 100.0% 108.5% 103.7% 105.5% 128.0%
Answer:
The answer is $1600.
Explanation:
Depreciation Expense store equipment = $1525
accumulated depreciation = $1525
Costs of goods sold = $1600
So, Merchandise Inventory = $1600.