Answer:
Times interest earned ratio = Net operating income/Interest expense
= $551,000/$512,000
= 1.08 times
Explanation:
Times interest earned is the ratio of net operating income to interest income. Net operating income = $551,000 and interest expense = $512,000. The division of net operating income by interest expense gives times interest earned ratio.
Based on the fact that the borrower was charged $412.50 on his balance of $60,000, the interest rate is 8.25%.
<h3>What is the interest rate?</h3>
The interest amount is monthly so the yearly amount is:
= 412.50 x 12
= $4,950
The borrower's interest rate is:
= 4,950 / 60,000 x 100%
= 8.25%
In conclusion, the borrower's interest rate is 8.25%.
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Answer:
A. increase its account payable period and its inventory turns
Explanation:
Negative cash conversion cycle means that a company uses less time to sell its inventory or requires less time to produce products from raw materials. It also uses less time to recieve cash from its customers compared to the time it uses to pay cash it owes.
So if a company is to have a negative cash conversion cycle it will need to increase the time it takes to pay parties it owes.
This will result in more cash reserves and returned cash it can use to purchase more products. Therefore number of inventory turnover will increase.
Answer:
Option (a) is correct.
Explanation:
Amount paid for house three years ago = $85,000
Selling price of house today = $110,000
Therefore,
Property appreciated by following percentage:
= (change in value ÷ Amount paid for house three years ago) × 100
= [($110,000 - $85,000) ÷ $85,000] × 100
= ($25,000 ÷ $85,000) × 100
= 0.2941 × 100
= 29.41%
Answer:
Option C Interviews should focus on skills that can be measured in an interview better than on a test.
Explanation:
The reason is that the person's intelligence is though in problem solving skills but this can also be done by questioning the person in areas where they can better extract information out of the person rather than using tests and by noticing his reactions and problem solutions offered. This means that the tests though helps in finding the intelligent person but it doesn't helps much because the willingness, eager to do things done and a pro-activeness of the person is everything. And these skills comes out when the person speaks in front of a recruiter which analyzes his behavior, his beliefs about things and many other things which gets clear overtime. So the basic mistake here by the management was poor way of extraction of information out of candidates.
