Exercise 11-19 (Algo) Computing and interpreting times interest earned LO A1 Use the following information from separate companies a through d Net Income (Loss) Interest Expense Income Taxes a. $ 172,000 $ 82,560 $ 43,000 b. 166,600 31,654 59,976 C. d. 146,200 175,100 42,398 7,004 61,404 84,048 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due? Complete this question by entering your answers in the tabs below. Times Interest Interest
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- Net Sales 36000 Commission received 6430 Interest received 3570 Cost of goods sold 7400 Dividends received 2220 From the above information the total income will be: a.OMR 41280 b.OMR 42820 c.OMR 48220 d.OMR 40820 Fast plz***********12. The Company provided the following financial information: Assets 7,250,800.00 Tax rate 35% BEP 14% ROA 4% Compute for the TIE ratio. Use 4 decimal places for your final answer.E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease)AssetsAccounts receivable $154,000 $120,000 $34,000Property, plant, and equipment 631,000 581,000 50,000Accumulated…
- 15) The following financial information is from ABC:Accounts Payable $15,000Buildings 80,000Cash 10,500Accounts Receivable 9,500Sales Tax Payable 4,500Retained Earnings 47,500Supplies 40,000Notes Payable (due in 18 months) 35,000Interest Payable 3,000Common Stock 35,000 What is the amount of current assets, assuming the accounts above reflect normal activity?A) $140,000. B) $20,000. C) $60,000. D) $175,000.f2. Subject :- Finance Company A has sales of $560, costs of $100 (not including depreciation), depreciation expense of $40, interest expense of $40, and a tax rate of 21 percent, current assets of $180, net fixed assets of $1480, current liabilities of $240, and long-term debt of $750. What is the time interest earned (TIE)? (keep two decimal places)19 - Which of the following is the account in which the net loss after tax for the operating period of the business is followed in the balance sheet ? a) 542 Extraordinary Reserves Hs. B) 591 Net Loss for the Period Hs. NS) 540 Legal Reserves Hs. D) 541 Status Reserves Hs. TO) 590 Net Profit for the Period Hs.
- tion 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yieldE4.17 (LO 2, 3, 5) The following information was taken from the records of Roland Carlson Inc. for the year 2020: Income tax applicable to income from continuing operations $187,000, Income tax applicable to loss on discontinued operations $25,500Gain on sale of equipment $ 95,000 Cash dividends declared $ 150,000Loss on discontinued operations 75,000 Retained earnings January 1, 2020 600,000Administrative expenses 240,000 Cost of goods sold 850,000Rent revenue 40,000 Selling expenses 300,000Loss on write-down of inventory 60,000 Sales revenue 1,900,000 Shares outstanding during 2020 were 100,000. Prepare a multiple step income statement (including earnings per share) and a statement of…Requirement: a. What is the effect of the errors on Biden's December 31, 20x2 retained earnings? net effects of the errors on Biden's 20x1 and 20x2 profit or loss, repesctively = overstated by P24,000
- HW - Ch 20-2 Prepare journal entries to record the effects on Shannon’s accounting records at December 31, 2021, for each of the items described above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars not in thousands of dollars.) (1) Record the gain on sale of investment with an original cost of $186,000 for $232,000 (2) Record the adjustment of equity securities for the investment of $232,000 as on the date of sale. (3) Record the fair value adjustment. (4) Record the loss-lawsuit. (5) Record correction of inventory error. (6) Record correct assets that were incorrectly expensed. (7) Record the 2021 adjusting entry for depreciation. (8) Record the income tax expense.Question C5 Majan Ltd income statement for the year ended 31st Dec 2020 and the balance sheets as at 31st Dec 2009 and 2019 are as follows: Income statement OMR in million Revenue 312 Cost of sales (177) Gross profit 135 Distribution expenses (36) Administrative expenses (15) 84 Rental income 14 Operating profit 98 Interest payable (13) Profit before taxation 85 Taxation (18) Profit for the year 67 Balance sheet as at 31st Dec 2020 and 2019 2020 2019 OMR in million OMR in million Non – current assets Property, plant and equipment Land and buildings 155 155 Plant and machinery 157 163 312 318 Current assets Inventories 18 21 Trade receivables 73 70 Current liabilities…Times interest earned Averill Products Inc. reported the following on the company’s income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest expense $410,000 $380,000 Income before income tax expense 4,756,000 3,914,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 Times Interest Earned fill in the blank 1 fill in the blank 2 b. Is the change in the times interest earned ratio favorable or unfavorable?