Answer:
the times interest earned ratio is 10
Explanation:
The computation of the times interest earned ratio is shown below:
Times interest earned ratio is
= income before interest expense and income taxes ÷ interest expense
= $30,000 ÷ $3,000
= 10
hence, the times interest earned ratio is 10
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The correct option is $457
Explanation:
The amount of cash paid in respect of insurance for the current period can arrived at using the below proforma or format:
Insurance expense in the year $477
less insurance prepaid in the previous year ($50)
add insurance prepaid this year $30
Cash paid for insurance in the current year $457
It is important to note that the question required actual cash paid in respect of insurance in the current year,full knowing that the beginning balances in prepayment was paid for last year implies that it should be deducted and the other way round for the closing insurance prepayment this year
A. Demand will go up.
The demand curve is inverse relationship between quantity demanded and the price of the product. Therefore, as the price of a product goes down, the demand will go up. This makes sense because, given a stable income, you can buy more of a product if the price is less, and people will want more of a product until they maximize their utility.
Answer and Explanation:
The computation of the effective interest rate is shown below:
For Fidelity bank
= (2 × 4 × $150,000 × 0.12) ÷ (4 +1 )× ($150,000 - $18,000 - ($150,000 × 26%)
= 30.97%
For southwest bank
= (2 × 12 × $150,000 × 0.12) ÷ (12+1 )× ($150,000 - ($150,000 × 13%)
= 25.46%
Business consultant Peter Drucker said that the most important factor of production is knowledge.