Times interest earned A company reports the following: Income before income tax $1,108,800 Interest expense 112,000 Determine the times interest earned ratio. If required, round the answer to one decimal place.
Q: A company has current assets of $92,000 (of which $37,000 is inventory and prepaid items) and…
A: The liquidity ratio indicates the ability of the business entity to pay out its current debt. It…
Q: 68. In the accrual basis income statement for the current year Maria Company reported revenue of…
A: Solution: Under cash basis amount should be reported as revenue = Cash collection from customers =…
Q: Times interest earned Berry Company reported the following on the company's income statement in two…
A: Times Interest Earned: This ratio is a measure of a company's ability to meet its debt obligations…
Q: Averill Products Inc. reported the following on the company's income statement in two recent years:…
A: a. Calculate the time interest earned ratio for the current year and the prior year
Q: Rosalind Company reported revenues of $111,500, expenses of $92,545, and net income of $18,955 for…
A: Return on assets = Net income / Average Total assets where, Average Total assets = (Beginning Total…
Q: Return on Total Assets A company reports the following income statement and balance sheet…
A: Return on total assets shows the firm's ability to use the total assets to generate expected…
Q: Using the balance sheet provided, what is the decimal value for the XYZ Company Balance Sheet Assets…
A: Balance Sheet: A balance sheet is a statement which provides financial data related to the assets,…
Q: What is the company's times interest earned ratio?
A: Information Provided: Income before provision for income taxes = $1,025,959 Interest expense =…
Q: Two income statements for Satterfield Company are shown below. Satterfield Company Income…
A: The comparison in different year financial statement can be made on the basis of increase or…
Q: Compute Chavez Company’s current ratio using the following information. Accounts receivable $18,000…
A: Crrent ratio = Current assets / Current liabilities
Q: imes interest earned A company reports the following: Income before income tax expense $4,628,400…
A: Formula for times interest earned is "Income before interest expense and income taxes/Interest…
Q: The formula for determining the number of times interest charges earned is Income before Income Tax…
A: The Times Interest Earned (TIE) Ratio is a financial metric that examines a company's capacity to…
Q: Adieu Company reported the following current assets and current liabilities for two recent years:…
A: Ratio Analysis: Liquidity ratios, solvency ratios, profitability ratios, efficiency ratios, and…
Q: A company reports the following:Income before income tax $8,000,000Interest…
A: Times interest earned ratio: This financial metric gauges the company’s capability to pay the…
Q: Well Company paid Being Company for merchandise with a $4500, 90-day, 10% note dated December 11.…
A: Interest on note for 90-days=Note×10%×90360=$4500×10%×90360=$112.5
Q: Based on the following financial data, calculate the ratios requested. (Round your answers to 4…
A: Debt ratio is a financial ratio which helps stakeholders like investors and shareholders to analyze…
Q: The data related to JK company is given below: Income tax payable $61,250 $17,500 $24,400 $5,000…
A: The Current assets means are those assets which are convertible into Cash within the operating cycle…
Q: A company reports the following: Income before income tax $565,120 Interest expense 88,300…
A: Income before Interest and Tax=Income before tax+Interest expense=$565,120+$88,300=$653,420
Q: Times Interest Earned Loomis, Inc., reported the following on the company's income statement in tvo…
A: Working: Current Year Prior Year Income before income tax expense $310,500,000 $432,000,000…
Q: A company reports the following income statement and balance sheet information for the current…
A: Calculate earnings before income and taxes:
Q: A company reports the following income statement and balance sheet information for current year: Net…
A: Introduction: Return on Total Assets: It tells the net profit earned on the total assets used by the…
Q: Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current…
A: a.Prepare the vertical analysis of the comparative income statement of Company I in the table…
Q: Determine the number of times interest charges were earned for current Year and prior Year. Round to…
A: Times-Interest-Earned ratio: It is the ratio that quantify a business ability to pay interest…
Q: Two income statements for Satterfield Company are shown below. Satterfield Company Income Statements…
A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: Selected accounts are listed below. How much is the firm's operating income? accrued payroll $2,000…
A: Operating income is one of the measure of profitability of the business. This is calculated by…
Q: Times Interest Earned Sprout Company reported the following on the company's income statement in two…
A: Times interest earned ratio shows ability of the business in meeting debt obligations with the help…
Q: Using the balance sheet provided, what is the decimal value for the XYZ Company Balance Sheet Assets…
A: Quick ratio is the metric that helps in computing the company's ability to pay of its obligations…
Q: Horizontal Analysis of Income Statement The following data (in millions) are taken from the…
A: Horizontal Analysis: Horizontal analysis is an approach that is used to analyze the financial…
Q: Adieu Company reported the following current assets and current liabilities for two recent years:…
A: A ratio that measures the ability of a company to pay current liability through its near cash or…
Q: Iacouva Company reported the following on the company’s income statement for two recent years:…
A: Times-Interest-Earned Ratio Formula:
Q: How do I calculae the times interest earned ratio?
A: Calculate the times interest earned ratio as follows: Times interest earned ratio = EBIT / Interest…
Q: A company's net income before interest & tax was OMR 400000 for its most recent year. The company's…
A: The net income before interest and tax is OMR 400,000. The shareholders' equity was OMR 2,100,000.…
Q: Use the following financial information: Accounts Receivable Sales Tax Payable Retained Earnings…
A: Current Assets - Current Assets is the assets that can be converted into cash with in a one year.
Q: A company reports the following:Income before income tax $4,000,000Interest expense…
A: Times interest earned ratio quantifies the number of times the earnings before interest and taxes…
Q: Brad Bang Co. reports net income of €75,000. The income ratios are Brad 60% and Bang 40%. Prepare…
A: Net Income of the business will be distributed to partners in the defined income or loss ratio.
Q: Hsu Company reported the following on its income statement: Income before income taxes $330,740…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: Sprout Company reported the following on the company's income statement in two recent years:…
A: Time interest earned = (Income before interest and taxes/interest expense)
Q: Oriole Company reported the following on its income statement: Income before income taxes $730000…
A: Income statement: The income statement is one of the three primary financial statements used to…
Q: The following data were abstracted from the records of Ballistic Corporation for the year: Sales…
A: The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a…
Q: Using the balance sheet provided, what is the decimal value for the XYZ Company Balance Sheet Assets…
A: Introduction:- Accounting equation also termed as balance sheet equation. It denotes relationship…
Q: Merryweather Corporation reported net income of $150,000, income before taxes of$240,000 and…
A:
Q: imes interest earned Berry Company reported the following on the company's income statement in two…
A: Time interest earned is a measurement of an organization's capacity to meet the debt obligation…
Q: Return on total assets A company reports the following income statement and balance sheet…
A: Calculation of return on assets.
Q: Compute the following for Stanley Limited. Round your answers to two decimal places. All answers…
A: The question is related to the Ratio Analysis. Ratio is the indicated quotient of two mathematical…
Q: Times interest earned A company reports the following: Income before income tax expense $3,120,000…
A: Times interest earned ratio measures the company's ability to pay its interest obligations. Times…
Q: Selected information taken from the financial statements of Wiley Company for two successive years…
A: Definition: Horizontal analysis: The comparison of an item of a financial statement of one year…
Q: The following financial data (in thousands) were taken from recent financial statements of Staples,…
A: 1.Determine the times-interest-earned ratio for the Incorporation S in Year 3, Year 2, and Year 1.
Q: Berry Company reported the following on the company's income statement in two recent years: Current…
A: Requirement a:Calculate the times-interest earned ratio for the current year and the prior year.
Times interest earned
A company reports the following:
| Income before income tax | $1,108,800 |
| Interest expense | 112,000 |
Determine the times interest earned ratio. If required, round the answer to one decimal place.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Times interest earned A company reports the following: Income before income tax expense $1,271,600 Interest expense 187,000 Determine the times interest earned ratio. If required, round the answer to one decimal place.Hsu Company reported the following on its income statement: Income before income taxes Income tax expense Net income $356,883 107,065 $249,818 Interest expense was $73,432. Hsu Company's times interest earned ratio (rounded to two decimal places) is Oa. 5.86 times Ob. 3.4 times Oc. 4.86 times Od. 2.4 timesFor this question, calculate all values to 2 decimal places of £M (e.g. £123.45M) unless otherwise specified, and all ratios to 2 decimal places of percentage (e.g. 9.87%). You are given the following income statements and balance sheets for Freddie M Corporation for fiscal years 2045 and 2046 (all figures are in £ million), Income Statement Balance Sheet Sales Cost of goods sold Gross margin Wage & salaries expense Depreciation expense Earnings before interest and tax Interest expenses Taxes Net income Dividends Change in shareholder's equity Assets: Cash & equivalents Receivables Inventories Current Assets Property, plant & equipment Accumulated depreciation Net property, plant & equip Total Assets 2045 400.00 -200.00 200.00 -50.00 -25.00 125.00 -25.00 -60.00 40.00 -16.00 24.00 2045 2046 480.00 -240.00 240.00 -60.00 -25.00 155.00 -20.00 -70.00 65.00 -26.00 39.00 2046 Liabilities: 30.00 36.00 Payables 60.00 Short-term debt 50.00 50.00 60.00 Long-term debt 130.00 156.00 Total…
- A company reports the following: Line Item Description Amount Sales $1,069,085 Average accounts receivable (net) 105,850 Determine (a) the accounts receivable turnover and (b) the days’ sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year.The following data are taken from the financial statements of Coronado Company. Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 (a1) Compute for each year the accounts receivable turnover. At the end of 2020, accounts receivable (net) was $465,000. (Round answers to 1 decimal place, e.g. 1.6.) Accounts receivable turnover eTextbook and Media Save for Later (a2) 2022 2021 $525,000 $500,000 4,100,000 3,184,500 Average collection period 2022 times 2022 days 2021 2021 times Compute for each year the average collection period. At the end of 2020, accounts receivable (net) was $465,000. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) Assistance Used Attempts: unlimited days Submit AnswerK McDaniel and Associates, Inc. reported the following amounts on its 2024 income statement: Year Ended December 31, 2024 Net income Income tax expense Interest expense $ 22,950 6,600 3,000 What was McDaniel's times-interest-earned ratio for 2024? OA. 7.65 OB. 10.85 OC. 9.85 OD. 8.65 point(s) possible ...
- Selected income statement data follow for Harper, Inc., for the year ended December 31 (in thousands). What is the company's times interest earned ratio? Income before provision for income taxes $1,025959 Interest expense $29,670 Statutory tax rate 37% Provision for income taxes $322,410 Net income $693,548Selected income statement data follow for Harper, Inc., for the year ended December 31 (in thousands). What is the company's times interest earned ratio? Operating income before interest Interest expense Operating income after interest Income tax Income after tax 35.6 30.6 11.2 24.4 6,617 189 6.428 1,607 4,821A company reports the following: Sales $1,057,770 Average accounts receivable (net) 83,950 Determine the (a) accounts receivable turnover, and (b) number of days' sales in receivables. When required, round your answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days
- The Lancaster Corporation's income statement is given below. Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes LANCASTER CORPORATION Interest Income before taxes Taxes (35%) Income after taxes a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 234,000 175,000 $ 59,000 33,000 $ 26,000 17,300 $ 8,700 3,045 $ 5,655FINANCIAL RATIO: Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places) f. Accounts receivable turnover (assume all sales are on credit) g. Days of receivable (use 365 days) h. Debt ratio i. Equity ratio j. Debt-to-equity ratio k. Gross profit ratio 1. Net profit ratio m. Return on assets n. Return on equityIacouva Company reported the following on the company’s income statement for two recent years: Please see the attachment for details: a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place.b. What conclusions can you draw?