Which of the following are steps in process costing? Select one: A. Visualize the physical flow of units B. Calculate the equivalent units C. Determine the per-unit costs D. Calculate the Cost of Goods Manufactured and the Ending WIP Inventory E. All of the above

Answers

Answer 1

Answer: E. All of the above

Explanation:

In process costing, all of the above are used. Process costing is used for the production of goods that a re homogenous so the cost is the same for all the goods.

First one must visualize the flow of the goods to see the costs they incur at each stage. The equivalent units should then be calculated as this would show the number of units that the cost is being assigned to. Next is to divide the costs incurred by the equivalent units to find the cost per unit. Then calculate the cost of goods manufactured based on the manufactured and ending inventory


Related Questions

the process by which companies get new customers, keep the customers they already have, and grow the bussiness by increasing their share of customers purchases is referred to as

Answers

Buisnesses and organisations are able to attract and retain valuable customers due to Customer relationship management (CRM)

Customer relationship management (CRM) is a process in which an organisation uses based on principles and guidelines to efficiently interact and cater to its customers.

Typically with the use of technology of CRM systems such as data analysis, Businesses are able to study and compile large and different amounts of information of their target customers.

This will enable them to effectively cater to their needs leading to improved sales yields and retainment of customers.  

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Which is not an advantage of a savings account?
A. You can deposit money in a savings account anytime.

B. The FDIC insures your savings against loss.

C. Savings accounts have low interest rates.

D. Savings accounts earn interest.

Answers

Answer:

C. Savings accounts have low interest rates.

'Savings accounts have low interest rates,' is not an advantage of a savings account.

What is a savings account?

A savings account is a deposit account that lets you deposit money safely with a bank. It also ensures safety and access to your money whenever you need. You can withdraw your money, either digitally or in person, at any point in time, from your savings account.

In savings accounts, interest can be compounded, either by daily, monthly, or quarterly means and you can earn interest based on that. In exchange for the ease and liquidity that savings accounts offer, one earns a lower rate than that paid by more restrictive savings instruments and investments.

Why does a savings account offer low interest rates?

When rates on loans are low, banks like to keep savings account rates even lower so that they can continue making money on them. Another reason of low interest rates is that, the RBI has slashed the repo rate from 6.25% to 6% on cues of low inflation.

Thus, this has enabled banks to get funds from RBI at lower interest rates. So this leads to the reduction of the interest rates on savings accounts and fixed deposits for its customers.

Hence, option C is correct.  

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Help bell pelsss I need starlight forward answer

Answers

Answer:

i ont know is coreect

It is a manageable increase so the answer is b I’m guessing I’m not sure

Your dishwasher can handle 100 plates per hour. Your stove can handle 30 meals (each on single plate) per hour. All of your meals require plates but only 60% of meals need something prepared on the stove. Which is more likely to cause a bottleneck, the dishwasher or the stove?

Answers

Based on the capacities of the dishwasher and the stove, the likely source of a bottleneck is the stove.

A bottleneck refers to:

A point in the production process that slows down production A point in the production process that is being overloaded with workloads

The dishwasher can wash 100 plates per hour. Assuming 60 meals were to be made in an hour, the dishwasher would be able to wash enough dishes but the stove would only handle 30 meals yet it is to handle:

= 60 x 60%

= 36 meals

In conclusion, the stove is therefore the source of the bottleneck.

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What organization design aspects of Zara make it so succuccessful ?

Answers

Answer:

The secret to Zara’s success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay. From the very beginning, Zara found a significant gap in the market that few clothing brands had effectively addressed. This was to keep pace with latest fashion trends, but offer clothing collections that are a combination of high quality and yet, are affordable. The brand keeps a close watch on how fashion is changing and evolving every day across the world. Based on latest styles and trends, it creates new designs and puts them into stores in a week or two. In stark comparison, most other fashion brands would take close to six months to get new designs and collections into the market.

It is through this strategic ability of introducing new collections based on latest trends in a rapid manner that enabled Zara to beat other competitors. It quickly became the people’s favourite brand, especially with those who want to keep up with fashion trends. Founder Amancio Ortega is famously known for his views on clothes as a perishable commodity. According to him, people should love to use and wear clothes for a short while and then they should throw them away, just like yogurt, bread or fish, rather than store them in cupboards.

The media often quotes that the brand produces “freshly baked clothes”, which survive fashion trends for less than a month or two. Zara concentrates on three areas to effectively “bake” its fresh fashions:

Shorter lead times (and more fashionable clothes): Shorter lead times allow Zara to ensure that its stores stock clothes that customers want at that time (e.g. specific spring/ summer or autumn/ winter collections, recent trend that is catching up, sudden popularity of an item worn by a celebrity/ socialite/ actor/ actress, latest collection of a top designer etc.). While many retailers try to forecast what customers might buy months in the future, Zara moves in step with its customers and offers them what they want to buy at a given point in time.

Lower quantities (through scarce supply): By reducing the quantity manufactured for a particular style, Zara not only reduces its exposure to any single product but also creates artificial scarcity. Similar to the principle that applies to all fashion items (and more specifically luxury), the lesser the availability, the more desirable an object becomes. Another benefit of producing lower quantities is that if a style does not generate traction and suffers from poor sales, there is not a high volume to be disposed of. Zara only has two time-bound sales a year rather than constant markdowns, and it discounts a very small proportion of its products, approximately half compared to its competitors, which is a very impressive feat.

More styles: Rather than producing more quantities per style, Zara produces more styles, roughly 12,000 a year. Even if a style sells out very quickly, there are new styles waiting to take up the space. This means more choices and higher chance of getting it right with the consumer.

Zara only allows its designs to remain on the shop floor for three to four weeks. This practice pushes consumers to keep visiting the brand’s stores because if they were just a week late, all the clothes of a particular style or trend would be gone and replaced with a new trend. At the same time, this constant refreshing of the lines and styles carried by its stores also entices customers to visit its shops more frequently.

In the following sections, the key components of Zara’s winning formula in the fashion retailing industry are illustrated.

Explanation:

briefly explain how undertaking of agricultural modernisation is reducing open - urban employment​

Answers

increased demand for labour

Lucy and Everly, a clothing retail company, wants to collect secondary data on the buying behavior of teenage customers in its new geographic market. Which action will Lucy and Everly most likely take in order to obtain this data

Answers

The action that Lucy and Everly will most likely take is obtaining of data compiled by databases created by marketing research firms within the new geographic market.

Marketing research means a process of gathering, recording, analyzing and drawing conclusion on collected data from potential customers of a product to facilitate decision making.

Main purpose of the marketing research is to provides information which are relevant for decision making in the firm.

A marketing research data are also provided by marketing research firms to firms who need them.

In conclusion, the action that Lucy and Everly will most likely take is obtaining of data compiled by databases created by marketing research firms within the new geographic market.

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Uhhhh..... can someone help me plz

Katrina graduated from college with a degree in veterinary science. She also has an interest in law enforcement. What company might be interested in hiring Katrina?
Question 5 options:


a government building looking for a security officer


a city government in need of an animal control officer


a county commissioner looking for an executive assistant


a large bank in need of a network manager

Answers

Definitely the second option I would say.
Second option most definitely

Question 4
What is the main risk posed by pests in the operation?
SELECT ONE
a
Cross-contact
b Chemical contamination
C Temperature abuse
d Biological contamination

Answers

The main risk posed by pests when it comes to food is that of d. Biological contamination

Pests are very bad for food because:

They can infect it with faces They can infect the food with dangerous pathogens

Fetal contamination and bacterial (pathogenic) infections are examples of biological contamination.

We can therefore conclude that pests are more likely than not, to pose a risk of biological contamination.

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Explain why there are advantages to a movie studio operating in southern California, rather than in, say, Florida.

Answers

There are advantages to a movie studio operating in southern California

due to cheap labor and land and numerous scenery.

California is a state in which movie producers prefer operating in as a result

of cheap labor and land which helps to cut the cost needed for producing a

movie.

California also has a lot of scenery such as rivers, mountains etc which

makes the movies more appealing and  is also where Hollywood is located

which is where most movie production and promotion takes place.

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If the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, how many American dollars are required to buy a product that costs 3.50 New Zealand dollars

Answers

2.57 American dollars are required to buy a product that costs 3.50 New Zealand dollars.

Given that the nominal exchange rate between the American dollar and the New Zealand dollar is 1.36 New Zealand dollars per American dollar, to determine how many American dollars are required to buy a product that costs 3.50 New Zealand dollars, the following calculation must be performed:

1.36 = 1 3.50 = X 3.50 x 1 / 1.36 = X 3.50 / 1.36 = X 2.57 = X

Therefore, 2.57 American dollars are required to buy a product that costs 3.50 New Zealand dollars.

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example of globalization as internalization and liberalization

Answers

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[tex] \huge{ \underline{ \underline{ \mathtt{ \purple{A} \pink{N} \green{S} \blue{W} \red{E} \orange{R}}}}}[/tex]♡

Example of Liberalization : - European Union has liberalized gas and electricity market.

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Example of globalization : - trading of commodities such as coffee or avocados.

❤Hope it's helpful↑(◍•ᴗ•◍)❤࿐

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Find the tax on a home if the assessed value is $24,375 and the tax rate is $43.97 per $1,000

Answers

Answer:

1071.76875

Explanation:

24,375/1000=24.375

24.375x43.97=1071.76875

I dont know a thing about buisness but I like math so I hope this is correct

As a high school student, which of the three error types would you be most concerned about? Why?

Answers

The three error types i would be most concerned about is wrong address, misspelled name and wrong name because they could lead to lower credit scores

The error in this context related to credit report errors which can happen while been a high school student.

Credit report refers to the organized record database of borrower's credit history from different sources.

Based on statistics, the student responded that the error they are most concerned about includes:

Wrong AddressMisspelled NameWrong Name.

Hence, the three error types i would be most concerned about is wrong address, misspelled name and wrong name because they could lead to lower credit scores.

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What would be the benefit of selling on Friday?

Answers

Answer:

In the U.S, Fridays that are on the eve of three-day weekends tend to be especially good. Due to generally positive feelings prior to a long holiday weekend, the stock markets tend to rise ahead of these observed holidays.

Explanation:

“Friday is the best day to sell” is already marginalised in the Investopedia article dedicated to it[1] .

The assumption “if everyone is selling” cannot be true, when there are only people willing to sell there is no trade, and with that no price.

It same assumption also includes a notion that there are fewer parties that are willing to hold over the weekend than there are willing to sell. In other words: it implies there are more short term traders than long term traders and (buy and hold) investors.

Rein Inc. reported deferred tax assets and deferred tax liabilities at the end of 20X3 and at the end of 20X4.
According to Statement of Financial Accounting Standard No. 109 Accounting for Income Taxes, for the year ended 20X4, Rein should report deferred income tax expense or benefit equal to the
A. Sum of the net changes in deferred tax assets and deferred tax liabilities.
B. Increase in the deferred tax liabilities.
C. Amount of the current tax liability, plus the sum of the net changes in deferred tax assets and deferred tax liabilities.
D. Decrease in the deferred tax assets.

Answers

Answer: A

sum of the net changes in deferred tax assets and deferred tax liabilities.

Explanation:

Freer trade, advances in information technology, and more global customers are pressuring many large global companies to:

Answers

Firms are often involve in different kinds of trade. Freer trade, advances in information technology, and more global customers are pressuring many large global companies to shift from functional structures to geographically based divisionalized structures.

There are great advances in information technology (IT). Firms often get benefits of free trade in IT as they are able to expand their business into other different new areas with less effective charges.

FTA is known to be very good to optimal sharing of resources in the region as it helps to boast the efficiency of economic activities and also increase the stock of a country's technology.

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How much would you need to deposit in an account now in order to have $6000 in the account in 15 years

Answers

Answer:

$400

Explanation:

So we know that is 15 years you will have $6000

so $6000 divided by 15 years.This will bring you how much money you have to deposit each year..

6000/15

400

so..

you will have to deposit $400 every year in 15 years.

Harper Motors sells 32 cars per month at an average price of $24,360. The carrying cost per car is $144 and the fixed order cost is $687. How many orders should the company place per year

Answers

The number of orders that the company should place per year is 6.34 orders.

Economic order quantity (EOQ) = (2* yearly demand*per order fixed cost/carrying cost per unit)^(1/2)

Economic order quantity (EOQ) = (2*(32*12)*687/144)^(1/2)

Economic order quantity (EOQ) = (2*384*4.7708)^(1/2)

Economic order quantity (EOQ) = 60.530772339

Economic order quantity (EOQ) = 60.53

Number of orders to be placed = Yearly demand / EOQ

Number of orders to be placed = (32*12)/60.53

Number of orders to be placed = 6.3439616719

Number of orders to be placed = 6.34 orders.

Therefore, the number of orders that the company should place per year is 6.34 orders.

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What is 48976897617xitself

Answers

Answer:

Hey mate....

Explanation:

This is ur answer....

Wth....Is that even a question....Imao

Well I am getting this....

2.39873650E+21

Hope it helps!

Brainliest pls!

Follow me! :)

In this activity, you’ll research incidents in which employers disciplined employees for not using social media responsibly. You’ll study why employers disciplined these employees and how company social media policies influenced the action taken against them. You’ll also create a list of five social media usage rules that you think all workers must follow. Finally, you’ll write about how you’ll avoid risky behaviors when using social media. Part A Conduct an Internet search and research at least three instances in which employers disciplined (or fired) employees (who were not at work during the time of posting) for an inappropriate social media posting. Briefly discuss the three instances and explain why the employer fired or punished the employee and how the social media post was inappropriate.

Answers

Answer:

in sum, an employer can terminate an employee for posting about individual gripes, but there can be a fine line between an individual complaint and attempt at concerted activity. Employers should consult with counsel before terminating or disciplining an employee for posting about work-related activity.

Firm I has been selling its products through a distributor for some time. It has become the market share leader. Unfortunately, this distributor has not been able to keep up with the evolving technology and customers are complaining. There are no alternative distributors available. Should Firm I keep its current distributor or should it begin distribution on its own?

Answers

Firm I should  begin distribution on its own in order to prevent loss and

liquidation of the company.

It is best for the company to become vertically integrated in instances such

as this. Vertical integration involves companies controlling more than one

stage of production.

By so doing, the company can restrategize and ensure its products satisfy

the customers through the adoption of the technology they are complaining

about. This helps to ensure increased profit made from the goods.

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The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement

Answers

Answer:

4 $ 248,400. Credit the buyer only.

Stargel Inc. common stock was $119.70 on December 31, 2014.
Stargel Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2014 and 2013
2014 2013
Retained earnings, January 1 . . . . . . . . . . . . . .$5,375,000 $4,545,000
Add net income for year . . . . . . . . . . . . . . . . . . . 900,000 925,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,275,000 $5,470,000
Deduct dividends:
On preferred stock . . . . . . . . . . . . . . . . . . . . . . $ 45,000 $ 45,000
On common stock. . . . . . . . . . . . . . . . . . . . . . . . .50,000 50,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 95,000 $ 95,000
Retained earnings, December 31 . . . . . . . . . . .$6,180,000 $5,375,000
Stargel Inc.
Comparative Income Statement
For the Years Ended December 31, 2014 and 2013
2014 2013
Sales (all on account) . . . . . . . . . . . . . . . . . . . $10,050,000 $9,450,000
Sales returns and allowances . . . . . . . . . . . . . . .50,000 50,000
Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000 $9,400,000
Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . 5,350,000 4,950,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,650,000 $4,450,000
Selling expenses . . . . . . . . . . . . . . . . . . . . . . .$ 2,000,000 $1,880,000
Administrative expenses . . . . . . . . . . . . . . . . . 1,500,000 1,410,000
Total operating expenses . . . . . . . . . . . . . . . . $ 3,500,000 $3,290,000
Income from operations . . . . . . . . . . . . . . . . . $ 1,150,000 $1,160,000
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000 140,000
$ 1,300,000 $1,300,000
Other expense (interest) . . . . . . . . . . . . . . . . . . 170,000 150,000
Income before income tax . . . . . . . . . . . . . . . $ 1,130,000 $1,150,000
Income tax expense . . . . . . . . . . . . . . . . . . . . . .230,000 225,000
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000 $ 925,000
Stargel Inc.
Comparative Balance Sheet
December 31, 20Y2 and 20Y1.
20Y2 20Y1
Assets
Current assets:
Cash $500,000 $400,000
Marketable securities 1,010,000 1,000,000
Accounts receivable (net) 740,000 510,000
Inventories 1,190,000 950,000
Prepaid expenses 250,000 229,000
Total current assets $3,690,000 $3,089,000
Long-term investments 2,350,000 2,300,000
Property, plant, and equipment (net) 3,740,000 3,366,000
Total assets $9,780,000 $8,755,000
Liabilities
Current liabilities $900,000 $880,000
Long-term liabilities:
Mortgage note payable, 10% $200,000 $0
Bonds payable, 10% 1,500,000 1,500,000
Total long-term liabilities $1,700,000 $1,500,000
Total liabilities $2,600,000 $2,380,000
Required:
Determine the following measures for 20Y2, rounding to one decimal place, except dollar amounts which should be rounded to the nearest cent. Assume 365 days a year.
Return on total assets %
Return on stockholders’ equity %
Return on common stockholders’ equity %

Answers

Answer 1.

Working Capital = Current Assets - Current Liabilities
Working Capital = $36,90,000 - $900000
Working Capital = $27,90,000

Answer 2.

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $36,90,000 / $900000
Current Ratio = 4.1

7) Number days' sales in inventory = (Inventory/Cost of goods sold) * 365 days

=(11,90,000 / 53,50,000) * 365 days = 81.18 days approx

8) Ratio of fixed assets to long-term liabilities = Fixed Assets/Long Term Liabilities

=(2350000+3740000) / 1700000= 3.58 times

9) Ratio of liabilities to stockholders' equity = Total Liabilities/stockholders' equity

=26,00,000 / 71,80,000

=0.36211 times

10) Number of times interest charges are earned = Earnings Before Interest & Tax / Interest Expense

= 1300000 / 170000 = 7.64 times

11) Number of times preferred dividends are earned = Dividend on preferred stock/preferred stock

= 45000 / 500000

=0.09 times

12) Ratio of sales to assets = Net Sales (Total Sales-Sales Return)/Total Assets

= 10,000,000 / 9780000

= 1.022 times

13 ) Rate earned on total assets = Net Income/Average Total Assets(Opening+closing Total Assets)/2

=900000 /(8755000+ 97,80,000)/2

=900000/ 9267500

=0.09711 times or 9.711 %

14) Rate earned on stockholders' equity = Net Income/Average Stockholders' Equity(opening+closing stockholders' Equity)/2

=900,000/(6375000+7180000)/2

=900000/6777500

=0.132 or 13.27 %

15) Rate earned on common stockholders' equity=

(Net Income - Dividend on Preferred stock)/Average Common Stock(opening + closing common stockholders' equity)

=(900000-45000)/(500000+500000)/2

=855000/500000

=1.71 times

16. Earnings per share on common stock = (Net Income - Dividend on Preferred stock)/Common Stock(in numbers)

=(900000-45000)/100000

=8.55 times

17) Price-earnings ratio = Market Price per share/ Earnings per share

=119.70(given)/8.55

=14 times

18) Dividends per share of common stock = Dividend to common stock/common stock (in number)

=50000 / 100000

=0.5 times

19) Dividend yield = Dividends per share of common stock/Market Price per share

=(0.5 /119.70) * 100

= 0.835%

if you have any doubt comment in the comment box

Eduardo wants to purchase stock in a company that is headquartered in Australia. Eduardo

Multiple Choice

A. can buy the shares from a broker on a U.S. exchange.

B. cannot legally own the stock of an Australian corporation.

C. will have to place her order through the Sydney Stock Exchange.

D. must obtain an investor visa to complete the purchase.

Answers

The answer is: A - can buy the shares from a broker on a U.S. exchange.

What is the unemployment rate in Cuba?

Answers

Answer:

Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Cuba unemployment rate for 2020 was 3.87%, a 2.2% increase from 2019. Cuba unemployment rate for 2019 was 1.67%, a 0.03% decline from 2018.

Explanation:

Martin is an intern working for Tennessee Fried Chicken (TFC), an international company with over 1,000 franchised restaurants throughout the United States and in 21 other countries. TFC heavily advertises on television and in various print media that its chicken is superior due to its blend of "42 secret herbs and spices." Many have tried to duplicate the recipe unsuccessfully, and burglars have even been caught trying to steal it. One day Martin is called into the president's office for an assignment, and during their conversation, the president leaves the room, leaving Martin alone. Martin notices that the wall safe is open and looks inside, where he sees an envelope labeled "THE RECIPE." He opens it and finds that it is the list of the 42 secret herbs and spices, along with quantities and order of use. He quickly makes a copy of the recipe and returns the envelope to the safe. That afternoon, he calls Bluto's Fried Chicken, a TFC competitor, and informs Bluto's of the information he possesses, and they arrange a meeting. If Martin sells the recipe to Bluto's, who, if anyone, would be guilty of mis-appropriation?
a. If Martin sells the recipe to Bluto's, Martin is guilty of misappropriation but Bluto's is not guilty of misappropriation.
b. If Martin sells the recipe to Bluto's, Martin is not guilty of misappropriation but Bluto's is guilty of misappropriation.
c. If Martin sells the recipe to Bluto's, both Martin and Bluto's are guilty of misappropriation.
d. Neither Martin nor Bluto's is guilty of misappropriation because leaving the safe open shows that the secret was not guarded and guarding is necessary to qualify for trade secret protections.

Answers

The culprits of misappropriation would be both Martin and Bluto's Fried Chicken.

Misappropriation is a crime against wealth or property. This crime occurs when a person or group seizes someone else's property, to make a profit.

According to the foregoing, both are incurring misappropriation because:

Martin: He was not the creator or owner of the recipe, he stole it in a moment of the owner's carelessness and wanted to obtain personal gain in exchange for the product owned by TFC.

Bluto's Fried Chicken: He knows that Martin obtained the recipe illegally, yet he still decides to make the transaction to copy the recipe and make more profit in his business.

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Consider a property with NOI of $72,000 and a debt coverage ratio of 1.2 applied to first year NOI. What would be the estimated monthly mortgage payment

Answers

Answer:

$10000 per month

Explanation:

I don't know

Alpha and Beta Companies can borrow for a five-year term at the following rates: Alpha Beta Moody’s credit rating Aa Baa Fixed-rate borrowing cost 10.5% 12.0% Floating-rate borrowing cost LIBOR LIBOR + 1% This time assuming more realistically that a swap bank is involved as an intermediary. Assume the swap bank is quoting five-year dollar interest rate swaps at 10.7% - 10.8% against LIBOR flat. Consequently, Alpha will issue fixed-rate debt at 10.5% and Beta will issue floating rate-debt at LIBOR + 1%. Alpha will receive 10.7% from the swap bank and pay it LIBOR. Beta will pay 10.8% to the swap bank and receive from it LIBOR. If this is done, Alpha’s floating-rate all-in-cost is: 10.5% + LIBOR - 10.7% = LIBOR - .20%, a .20% savings over issuing floating-rate debt on its own. Beta’s fixed-rate all-in-cost is: LIBOR+ 1% + 10.8% - LIBOR = 11.8%, a .20% savings over issuing fixed-rate debt. Is that analysis correct?

Answers

Based on the information given about the LIBOR, it can be deduced that the analysis is correct. Therefore, it's true.

From the information given, the quality spread differential will be calculated thus:

= Differential fixed rate debt - Differential floating rate debt

= (12.0% - 10.5% - 1%)

= 0.5%

In this case, a positive quality spread differential implies that the swap is in favor of both parties.

In conclusion, the analysis that's given is correct.

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Olivas Recreation reported a net income of $3.2 billion, interest expense of $214 million, and income tax expense of $195 million in 2022. What is their times interest earned

Answers

The times interest earned is 16.86 times.

The times interest earned is also known as interest coverage. It is a type of coverage ratios. Coverage ratios measure the ability of a company to cover its debt payment.

Times interest earned = earnings before interest and taxes / interest payment

Earnings before interest and taxes = net income + interest expense + tax expense

$3.2 billion + 214 million + 195 million = $3.609 billion

Times interest earned = $3.609 billion / $214 million = 16.86 times

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