Answer:
10400
Explanation:
The firm's times interest earned ratio is 10.
What is interest?
Someone borrows money during a hard time, they are paying additional amount, which is an interest. In monetary terms, interest is a yearly percentage of the loan amount. Different categories, including simple interest, compound interest, and annual interest, are used to categorize the loan.
The given amount is:
Interest charge = $10,000Sales = $1,000,000Tax rate = 40%Net profit margin = 6%firm's net income:
Net income = sales × net profit margin.
Net income = $1,000,000 × 6%
Net income = $60, 000
earnings before interest and taxes (EBIT)
EBIT = [tex]\frac{Net income}{1 - tax rate}[/tex]
EBIT = [tex]\frac{60,000}{1 - 40}[/tex]% (1 - 40%)
EBIT = 1000, 000
The firm's times-interest-earned ratio (TIE):
TIE = [tex]\frac{EBIT}{Interest charge}[/tex]
TIE = [tex]\frac{100, 000}{10, 000}[/tex]
TIE = 10
As a result, the times interest earned ratio is 10.
Learn more about on interest, here:
https://brainly.com/question/13324776
#SPJ2
You run a nail salon. Fixed monthly cost is $5,093.00 for rent and utilities, $5,924.00 is spent in salaries and $1,370.00 in insurance. Also every customer requires approximately $4.00 in supplies. You charge $116.00 on average for each service.You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,944.00, salaries to $6,992.00 and insurance to $2,427.00 per month. Cost of supplies will increase to $8.00 per service. However you can now charge $151.00 per service. At what point will you be indifferent between your current location and the new loaction
Answer:
The indifference point is 290 services.
Explanation:
Current location:
Rent and utilities= $5,093
Salies= $5,924
Insurance= $1,370
Total fixed cost= $12,387
Contribution margin per unit= 116 - 4= $112
New location:
Rent and utilities= $11,944
Salies= $6,992
Insurance= $2,427
Total fixed costs= $21,363
Contribution margin per unit= 151 - 8= $143
First, we need to structure the total income formula (y):
Current location:
y= 112x - 12,387
New location:
y= 143x - 21,363
x= number of services
Now, we equal both formulas and isolate x:
112x - 12,387 = 143x - 21,363
31x =8,976
x= 289.55 = 290 services
The indifference point is 290 services.
Prove:
y= 112*290 - 12,387= $20,093
y= 143*290 - 21,363= $20,107
The difference is due to round up.
Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. A firm may operate in multiple industries. Different firms may use different accounting practices. A firm’s financial statements show only one period of financial data.
Answer:
Different firms may use different accounting practices.
Explanation:
Financial ratios are ratios that summarises financial information and can be used in comparison of performance of companies.
Types of financial ratios :
1. Activity ratios
2. Liquidity ratios
3. Solvency ratios
4. Profitability ratios
5. Valuation ratios
If different accounting practices are used, it would result in different data. This can hamper comparison among companies
Parker Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $50,000 and 20,000 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year, it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs. Required: a. Job #461 contained 100 units. Determine the unit product cost that would appear on the job cost sheet. b. Determine the underapplied or overapplied overhead for the year.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (50,000/20,000)
Predetermined manufacturing overhead rate= $2.5 per direct labor hour
Now, we can determine the total cost and unitary cost of Job 461:
Direct labor hours= 1,500/5= 300
Total cost= 4,000 + 1,500 + 2.5*300= $6,250
Unitary cost= 6,250/100= $62.5
To calculate the under/over allocation, first, we allocate overhead for the whole company:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 2.5*24,000= $60,000
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 54,000 - 60,000
Under/over applied overhead= $6,000 overallocated
Investment X offers to pay you $4,800 per year for 9 years, whereas Investment Y offers to pay you $7,100 per year for 5 years. If the discount rate is 6 percent, what is the present value of these cash flows
Answer and Explanation:
The computation is shown below:
Present value of investment X is
= Annuity × [1 - 1 ÷ (1 + r)^n] ÷ r
= $4,800 × [1 - 1 / (1 + 0.06)^9] ÷ 0.06
= $4,800 * 6.801692
= $32,648.12
And,
The Present value of investment Y is
= Annuity × [1 - 1 ÷ (1 + r)^n] ÷ r
= $7,100 × [1 - 1 ÷ (1 + 0.06)^5] ÷ 0.06
= $7,100 × 4.212364
= $29,907.78
You run a school in Florida. Fixed monthly cost is $5,644.00 for rent and utilities, $6,057.00 is spent in salaries and $1,616.00 in insurance. Also every student adds up to $90.00 per month in stationary, food etc. You charge $647.00 per month from every student now.You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,636.00, salaries to $6,878.00 and insurance to $2,230.00 per month. Variable cost per student will increase up to $185.00 per month. However you can charge $1,167.00 per student. At what point will you be indifferent between your current mode of operation and the new option
Answer:
The indifference point is 15 students.
Explanation:
Giving the following information:
Current location:
Total fixed costs= 5,644 + 6,057 + 1,616= $13,317
Contribution margin per student= 647 - 90= $557
New location:
Total fixed costs= 10,636 + 6,878 + 2,230= $19,744
Contribution margin per student= 1,167 - 185= $982
First, we need to structure the total income formula for each location:
Current location= 557x - 13,317
New location= 982x - 19,744
x= number of students
Now, we equal both formulas and isolate x:
557x - 13,317 = 982x - 19,744
425x = 6,427
x= 15.122 = 15 students
The indifference point is 15 students.
Prove:
Current location= 557*15 - 13,317= (4,962)
New location= 982*15 - 19,744= (5,014)
The difference is due to round up.
You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8 percent interest. Approximately how long must you wait for your investment to double in value
Answer:
It will take 8.75 years to double the investment.
Explanation:
Giving the following information:
Interest rate= 8%
To calculate the time required to double any amount of money, we can use the rule of 70. The rule of 70 is a means of estimating the number of years it takes for an investment or your money to double.
Number of Years to Double= 70/Annual Rate of Return
Number of Years to Double= 70/8
Number of Years to Double= 8.75
It will take 8.75 years to double the investment.
when a natural disaster happens, what usually happens to stock prices?
Explanation:
During natural disasters , the stock index decreases on the day of the events and on the two subsequent days. Therefore, investors should short sell the index on the day of the disaster and hold it for 2 days.
What is the basic concept used to emphasize in aristotle's model of communication?
Answer:
The Aristotle's communication model is a speaker centered model
Explanation:
as the speaker has the most important role in it and is the only one active. It is the speaker's role to deliver a speech to the audience. The role of the audience is passive, influenced by the speech.
name three benefits of being a for-profit business
Answer:
Owner Income
Owner Income
Company Morale
Explanation:
hope this helped please give brainliest.
Which item is important to consider when selecting a
credit card?
Answer:
APR, annual fees, charges, etc.
Explanation:
McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively.
The partnership income-sharing agreement provides for
• annual salaries of $22,000 for McGill and $12,000 for Smyth,
• interest at 10% on beginning capital balances, and,
• remaining income or loss to be shared 60% by McGill and 40% by Smyth.
Requirement:
(1) If the income was $50,000, what will be the distribution of income to each partner?
(2) If the income was $36,000, what will be the distribution of income to each partner?
(3) Journalize the allocation of net income in each of the situations above.
Explanation:
5800 is interest,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,, ,,,
What internal dimensions of the company were part of the problems that
occurred?
If a union operates in a right to work state, it will not be allowed to create a ________ workplace, but may have a ________ workplace.
Answer:
If a union operates in a right to work state, it will not be allowed to create a CLOSED SHOP workplace, but may have a OPEN SHOP workplace.
Explanation:
A closed shop workplace refers to a company where all the employees must belong to the union in order to be hired or to continue working for the company. An open shop workplace refers to a company where joining a union is optional, and no one can be fired (or not hired) for not belonging to a union.
The fill in the blanks should be filled with union shop and open shop.
The following information should be considered:
In the case when the union operated for right to work so it is not permitted to develop the union shop workplace.But at the same time, the open shop workplace should be created.Therefore we can conclude that The fill in the blanks should be filled with union shop and open shop.
Learn more: brainly.com/question/16115373
The MoMi Corporation’s cash flow from operations before interest, depreciation and taxes was $2.0 million in the year just ended, and it expects that this will grow by 5% per year forever. To make this happen, the firm will have to invest an amount equal to 20% of pretax cash flow each year. The tax rate is 21%. Depreciation was $260,000 in the year just ended and is expected to grow at the same rate as the operating cash flow. The appropriate market capitalization rate for the unleveraged cash flow is 10% per year, and the firm currently has debt of $4 million outstanding. Use the free cash flow approach to calculate the value of the firm and the firm’s equity.
Answer:
Kindly check explanation
Explanation:
Given the following :
Previous year cash flow from operations before interest, depreciation and taxes = $2.0 million
Growth rate (g) = 5% per year
Pretax cashflow per year = 20%
Tax rate = 21%
Depreciation = $260,000
Market capitalization rate = 10%
Outstanding debt = 4 million
Cash flow from operation before interest tax:
Previous year cashflow + (5% growth in previous year)
(2,000,000) + (0.05 * 2,000,000)
(2,000,000 + 100,000) = $2,100,000
Depreciation + growth (5%):
260,000 + (260,000*0.05) = $273,000
Taxable income = cashflow - depreciation
Taxable income = $(2,100,000 - 273,000)
= $1,827,000
Tax amount = 0.21 * 1827000 = $383670
After tax income = (1827000 - 383670):
After tax income = $1,443,330
After tax cash flow from operations :
(After tax unleveraged income + Depreciation)
After tax Cash flow from Operation = $1,443,330 + $273,000 = $1716330
New investment :
20% of pretax cashflow from operation:
0.2 * $2,100,000 = $420,000
Free cash flow = $1716330 - $420,000 = $1,296,330
Present value of all future free cash flow:
Free cashflow / (capitalization rate - growth rate) = 1296330 / (0.1 - 0.05)
= 1296330 / 0.05
= $25,926,600
Hence, value of firm = $25,926,600
Value of equity :
Value of firm - outstanding debt
$25,926,600 - $4,000,000
= $21,926,600
Which actions would the Federal Reserve most likely take to slow Inflation?
Lower discount rate and buy government securities
Raise reserve requirement and lower discount rate
Ralse reserve requirement and sell government securities
Buy government securities and raise discount rate
11. The seller must indicate in the RLA if the premises are occupied by tenants If the tenants have a valid lease: Group of answer choices a. They may be vacated after the sale. b. Their security deposits are kept by the seller. c. They may remain in possession after the sale (correct box must be checked) d. The buyer need not be notified until after the sale.
Answer:
c. They may remain in possession after the sale
Explanation:
When a landlord wants to sell a property that is currently occupied by tenants, it must notify both the tenants and potential buyers about the rental agreement and his/her intention to sell the property.
Generally speaking, once rental agreements are signed, they are independent from who actually owns the property (house, apartment, office, etc.). Even if the buyer of the house (new owner) doesn't want the tenants to stay, the tenants have the right to do so until their contract expires.
The tenants have the right to even limit and set the conditions by which the seller can show the property, e.g. if they don't want to, the owner cannot cannot take pictures of the property's interior if the tenants consider that it violates their privacy.
If the buyer wants to rent the property, it is generally a good thing to have tenants with valid contracts.
Until the 2003 playoffs, NBA had used a best-of-five format for the first-round series, that is, the series would end as soon as one of the teams won 3 games. In other words, the first-round series would last 3,4 or 5 games. Obtain the probabilities for all the three possibilities by assuming that teams are equally matched and each game is independent.
Answer:
14 yes 23xy so 14
Explanation:
On December 29, 2020, an employee received a $5,000 check from her employer's client. The check was payable to the employer. The employee did not remit the funds to the employer until December 30, 2020. The employer deposited the check on December 31, 2020, but the bank did not credit the employer's bank account until January 2, 2021. Complete the statement below regarding when the cash basis employer is required to include the $5,000 in gross income. In because a check received considered a cash equivalent and a cash basis taxpayer must recognize the income when the check is .
Answer:
In 2020 because a check received IS considered a cash equivalent and a cash basis taxpayer must recognize the income when the check is RECEIVED.
Explanation:
Checks are basically cash, that is why you record a cash disbursement once you issue a check, not when the check is cashed. Once a check has been issued or received, a cash transaction has been made. A cash basis taxpayer must record revenue when it collects it, and collecting a check is equivalent to collecting cash.
Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year
Answer:
d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year
Since Eva's standard deduction is $12,000, then we must assume that we are dealing with income earned during 2018.
Eva's AGI = $60,000 - $5,000 (business expenses) = $55,000 - (7.65% x $55,000 for self employer taxes) - $12,000 (standard deduction) = $38,792.50
Eva's tax liability:
$9,700 x 10% = $97012% x ($38,700 - $9,700) = $3,48022% x ($38,792.50 - $38,700) = $20.35total tax liability = $4,470.35Yesterday, Water and Power Co. released its 2018 annual report on the company’s website. While reading the report for her boss, Tessa came across several terms about which she was unsure. She leaned around the wall of her cubicle and asked her colleague, Asher, for help. TESSA: Asher, do you have a second to help me with my reading of Water & Power’s annual report? I’ve come across several unfamiliar terms, and I want to make sure that I’m interpreting the data and management’s comments correctly. For example, one of the footnotes to the financial statements uses "the book value of Water & Power’s shares," and then in another place, it uses "Market Value Added." I’ve never encountered those terms before. Do you know what they’re talking about? ASHER: Yes, I do. Let’s see if we can make these terms make sense by talking through their meaning and their significance to investors. The term book value has several uses. It can refer to a single asset or the company as a whole. When referring to an individual asset, such as a piece of equipment, book value refers to the asset’s , adjusted for any accumulated depreciation or amortization expense. The value, or difference between these two values, is called the asset’s book value. In contrast, when the term refers to the entire company, it means the total value of the company’s as reported in the firm’s .
Answer:
Yesterday, Water and Power Co. released its 2018 annual report on the company’s website. While reading the report for her boss, Tessa came across several terms about which she was unsure. She leaned around the wall of her cubicle and asked her colleague, Asher, for help.
TESSA: Asher, do you have a second to help me with my reading of Water & Power’s annual report? I’ve come across several unfamiliar terms, and I want to make sure that I’m interpreting the data and management’s comments correctly. For example, one of the footnotes to the financial statements uses "the book value of Water & Power’s shares," and then in another place, it uses "Market Value Added." I’ve never encountered those terms before. Do you know what they’re talking about?
ASHER: Yes, I do. Let’s see if we can make these terms make sense by talking through their meaning and their significance to investors. The term book value has several uses. It can refer to a single asset or the company as a whole. When referring to an individual asset, such as a piece of equipment, book value refers to the asset’s historical value or original purchase price, adjusted for any accumulated depreciation or amortization expense. The net value, or difference between these two values, is called the asset’s book value. In contrast, when the term refers to the entire company, it means the total value of the company’s shareholders’ equity as reported in the firm’s balance sheet .
The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3: Accounts Payable $ 357,600 Accounts Receivable 74,000 Cash 736,100 Common Stock 672,600 Equipment 59,800 Logo and Trademarks 423,000 Long-term Notes Payable 269,600 Retained Earnings 118,600 Software 125,500 The company entered into the following transactions during July, Year 3. Stockholders contribute $370,000 cash for additional ownership shares and the company borrows $185,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years. No other transactions took place during July, Year 3. Required: Prepare a classified balance sheet for the company at June 30, Year 3. Show the effects of the July transactions on the basic accounting equation. Prepare the journal entries that would be used to record the transactions.
Answer:
Please see attached solution.
Explanation:
1. Prepare a classified balance sheet for the company June 30
2. Show the effect of July transaction on the basic accounting equation
3. Prepare the journal entries that would be used to record the transactions.
Please find attached solution to the above questions
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $30,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 3,950 Outstanding checks 1,512 Additionally, a $58 check written and recorded by the company correctly, was recorded by the bank as a $85 deduction. The adjusted cash balance per the bank records should be:
Answer:
$33,316
Explanation:
Preparation of the adjusted cash balance per the bank records
Balance as per bank statement $30,861
Add Deposit in transit 3,950
Add Bank error (85-58) 17
Less Outstanding checks (1,512 )
Adjusted cash balance per the bank RECORDS $33,316
Therefore the adjusted cash balance per the bank records should be $33,316
g If Billingham knows that it can sell the XC-750 to another firm for $2.17 million in two years, what kind of real option would that provide? (Select the best choice.) A. The decreased production will also require decreased inventory. B. This provides Billingham the option to abandon the investment. C. The firm can recover the feasibility study cost. D. Billingham will no longer depreciate the machine.
Answer:
B. This provides Billingham the option to abandon the investment.
Explanation:
In the case when Billingham knows that the XC-750 would be sell to the other firm for $2.17 million for the two years so in this case, the real option that could be provided is that Billingham should abandon the investment as it is beneficial for the company due to which the company is not able to suffered the loss otherwise the chances of the loss is very high
Utility line workers may need to tolerate heights.
OA.
True
OB.
False
Answer:
true
Explanation:
they need to go high
Answer:
true
Explanation:
Is goodwill current asset?
Answer: Goodwill is recorded as an intangible asset on the acquiring company's balance sheet under the long-term assets account. Goodwill is considered an intangible (or non-current) asset because it is not a physical asset like buildings or equipment
Explanation:
Which of the following statements is true? Group of answer choices The production function shows the trade-off between producing different kinds of outputs. The short-run production function includes both fixed and variable inputs. The short-run production function includes both fixed and variable costs. The production function shows the trade-off in inputs that produce the same amount of output. An inefficient firm is unable to achieve as much output as the production function shows.
Answer: An inefficient firm is unable to achieve as much output as the production function shows.
Explanation:
The Production function shows the maximum amount of output that can be produced by a company given the a certain number of inputs which are usually capital and labor.
At each combination of the input therefore, the function shows how much a company should be able to produce. If a company is therefore inefficient and unable to use its inputs effectively, it will be unable to produce at the point it is to be producing at given the combination of inputs they are using.
Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. a. Calculate the annual, end-of-year loan payment. b. Prepare a loan amortization schedule showing the interest and principal breadown of each of the three loan payments. c. Explain why the interest portion of each payment declines with the passage of time. a. The amount of the equal, annual, end-of-year loan payment is $6460.976460.97. (Round to the nearest cent.) b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments. Many financial calculators have an amortization function which makes this process easy. (Hint: Once the payment is determined in step a above, you can use the AMORT function to calculate the interest paid, principal paid and ending loan balance for each payment period). (Round to the nearest cent.) End-of-year Timeline Beginning-of-year Principal Loan Payment Interest Payment Principal Payment End-of-year Principal 1 $1500015000 $6460.976460.97 $21002100 $4360.974360.97 $10639.0310639.03 2 $nothing $nothing $nothing $nothing $nothing 3 $nothing $nothing $nothing $nothing $nothing c. Explain why the interest portion of each payment declines with the passage of time. (Select the best answer below.)
Answer:
a) annual payment = PV of the loan / PV annuity factor
i = 14%
n = 3
PV annuity factor, 14%, 3 periods = 2.3216
annual distribution = $15,000 / 2.3216 = $6,461.06
b)
principal cash payment interest paid principal paid ending bal.
15,000 6,461.06 2,100 4,361.06 10,638.94
10,638.94 6,461.06 1,489.45 4,971.61 5,667.33
5,667.33 6,461.06 793.73 5,667.33 0
c) the interest portion declines with every payment because interest is charged over the principal's balance, and if the principal decreases, then the interest will be lower.
When a multi-product factory operates at full capacity, decisions must be made about which products to emphasize. In making such decisions, products should be ranked based on: Group of answer choices
Group of answer choices
A. selling price per unit contribution.
B. margin per unit contribution
C. margin per unit of the constraining resource.
D. unit sales volume
Answer:
C. contribution margin per unit of the constraining resource.
Explanation:
When a multi-product factory operates at full capacity, decisions must be made about which products to emphasize. In making such decisions, products should be ranked based on contribution margin per unit of the constraining resource.
since noah is worried about completing his research project on time, the most helpful thing he could do is to choose a topic that
a. is broad
b. he has no interest in
c. is easy to research
d. he knows very little about
Answer:
c
Explanation:
They since Noah is worried about completing his research project on time, the most helpful thing he could do is to choose a topic that is easy to research. Thus, option (c) is correct.
What is research?The term “research” refers to generating and creating new ideas with the help of previous studies and phenomena. Using primary valid sources that have already been published on a subject that is related For example, journals, articles, population data, and historical events are based.
According to the case, Noah is worried about completing his research project. It was the necessary to decide the appropriate significance topic related to the research interested. The topic was the known to the easy to the search a matter and the completing her project.
As a result, the significance of the research are the aforementioned. Therefore, option (c) is correct.
Learn more about on research, here:
https://brainly.com/question/18723483
#SPJ6
Having a great credit score will make it easier for you to
get into a better educational institution.
TRUE
FALSE
