Grand Company reported the following on its income statement: Income before income taxes$ ,000 Income tax expense 100,000 Net income $300,000 An analysis of the income statement revealed that interest expense was $ 100, 000 . Grand Company's times interest earned was?

Grand Company reported the following on its income statement: Income before income taxes$ ,000 Income tax expense 100,000 Net income $300,000 An analysis of the income statement revealed that interest expense was $ 100, 000 . Grand Company's times interest earned was?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Made Answer

A: Given:Gross Sales =$1,130,000Cost of Goods Sold (COGS) =$532,000Selling Expenses =$222,000Notes…

Q: solve this one please

A: To calculate the cash paid for income taxes during the year, we need to adjust the income tax…

Q: Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9:…

A: Times interest earned or TIE is the ratio which helps in measuring the ability of an entity to pay…

Q: Selected accounts are listed below. How much is the firm's operating income? accrued payroll…

A: Operating income of the firm is the income that is earned from the core business activities of the…

Q: 14. Below is a recent income statement for Mountain Media Services, Inc.: Mountain Media Services,…

A: FREE CASH FLOWFree cash flow means cash generated from operating activities after the payment of…

Q: sing the following information, calculate net profit before tax. $ Sales revenue 300…

A: Solution: Particulars Amount Sales Revenue 300,000 Less: Wages Expense (100,000)…

Q: Ashvinn

A: Option a: 7.3This option is correct because the calculation we performed earlier showed that…

Q: Solomon, Inc. paid $215 in dividends and $507 in interest expense. The addition to retained…

A: EBT is earnings before taxes. Earnings before taxes are calculated by deducting Interest from…

Q: Frezia Corp.'s total assets at the end of last year were P315,000 and its net income after taxes was…

A: Return on total assets = Net Income/ Avg. total assets

Q: Averill Products Inc., reported the following on the company's income statement in 20Y8 and 20Y9:…

A: The Time interest earned ratio compares the earnings before interest and tax with the interest…

Q: Ans

A: Step 1:a) and b)We have to calculate the net income and the operating cash flow. The formula of…

Q: Loomis, Inc., reported the following on the company’s income statement in two recent years:…

A: Times Interest earned Ratio Times interest earned ratio is the ratio which shows the ability of the…

Q: A company's interest expense is $8,000. Its income before interest expense and income taxes is…

Q: In a recent year, Crane Corporation reported net income of $205800, interest expense of $47000, and…

A: The ratio analysis helps to analyze the Financial statements of the business. The times interest…

Q: Computer World reports income tax expense of $340,000. Income taxes payable at the beginning and end…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: Refer to the following selected financial information from Gomez Electronics. Compute the company’s…

A: Times Interest earned ratio is calculated with the help of following formula Times Interest Earned…

Q: In recent year Palestine Corporation had a net income of $12,500, interest expense of $2,500, and a…

A: Given: Net income = $12,500 Interest expense = $2,500 Times interest earned = 9

Q: A company has interest expense of $54,000, income taxes expense of $136,040, and net income of…

A: Times interest earned ratio is the measure which helps the entity in determining the ability of the…

Q: Net Income Interest (Loss) $ 185, 000 179, 600 157, 250 188, 100 Expense $ 59,200 80, 820 44, 030…

A: The question requires the calculation of times interest earned ratio. Times interest earned ratio is…

Q: Times interest earned A company reports the following: Income before income tax expense $3,075,800…

A: Solution: Times interest earned ratio = Income before interest and income taxes / Interest expense…

Q: Times interest earned Averill Products Inc. reported the following on the company’s income…

A: Formula: Times Interest Ratio = Income before Interest and tax/ Interest Expense Times Interest…

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: Merryweather Corporation reported net income of $150,000, income before taxes of $240,000 and…

A: Times interest earned ratio is one of the ratio which shows income before interest and taxes with…

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: Excerpts from Candle Corporation's most recent balance sheet (in thousands of dollars) Year 2 Year 1…

A: The ratio analysis helps to analyze the financial statements on the basis of the different elements…

Q: Times interest earned A company reports the following: Income before income tax expense $5,310,000…

Q: XYZ Corporation reported net income of $100,000, interest expense of $10,000, and tax expense of…

A: To calculate the company's earnings before interest and taxes (EBIT) and net profit margin, we can…

Q: Times interest earned A company reports the following: Income before income tax expense $6,000,000…

A: Solution: Income before interest and income tax = Income before income tax expense + Interest =…

Q: The Simmons Corporation's income statement is given below. SIMMONS CORPORATION Sales Cost of goods…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Q: In the recent year Sheridan Company had net income of $207400, interest expense of $54000, and tax…

A: The question is multiple choice question Required Choose the Correct Option.

Q: Need help for this question

A: Step 1: Introduction to the Time's Interest EarnedTime's interest earned is a ratio that shows the…

Q: Balance Sheet ($ in Millions) Income Statement ($ in Millions) Liabilities and Owners' Equity Assets…

A: Financial ratios or accounting ratios are those ratios which compare the line items of balance sheet…

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: Skysong Inc, a greeting card company, had the following statements prepared as of December 31, 2020.…

A: A cash flow statement indicates cash inflow and cash outflow information of a particular time…

Q: Ron Landscaping's income statement reports net income of $76,200, which includes deductions for…

A: Facts in the given question are as follows: Net Income reported - $76,200 Interest Expenses -…

Q: Presented below are certain account balances of Splish Products Co. Rent revenue $6,810 Sales…

A: Formulas; Total Net revenue = (Gross sales - Sales discounts, returns and allowances) + Other…

Q: Ron Landscaping's income statement reports net income of $76,200, which includes deductions for…

A: The times interest ratio is a measure of a companies ability to meet its debt obligation based on…

Q: Times interest earned A company reports the following: Income before income tax $4,255,200 Interest…

A: Formulas: Times interest earned ratio = EBIT / Interest

Q: In an income statement, total Sales and revenue in $230,000 and total operating expenses is $80.000.…

A: Solution Net income = Total sales and revenue - Total operating expenses - Tax.

Q: Using the financial data for Key Wahl Industries Sales Net Profit After Tax $337,5000 Total Assets…

A: The debt ratio is also called Debt to Asset ratio which indicates percentage of total assets that is…

Q: What is the interest coverage ratio?

A: Interest Coverage Ratio: It is a measure showing how well the firm can pay the interest expense on…

Q: Save Mart had income before interest expense and income taxes of 12, $508 million and interest…

A: The objective of the question is to calculate the times interest earned for both Save Mart and Value…

Q: Question 1:- Brodsky's Corporation had net sales of 2600000, Sales discounts 45000, cost of goods…

A: Income statement is also known as statement of profit and loss. It represents the profit and loss of…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Using the income statement for Times Mirror and Glass Co., compute the following ratios: TIMES MIRROR AND GLASS Co. Income Statement Sales Cost of goods sold Gross profit Selling and administrative expense Lease expense Operating profit* Interest expense Earnings before taxes Taxes (30%) Earnings after taxes *Equals income before interest and taxes. a.Compute the interest Interest coverage ge ratio. (Round yo times $ 223,000 130,000 $ 93,000 44,000 19,100 $ 29,900 10,600 times $ 19,300 7,720 $ 11,580 answer to 2 decimal places.) b.Compute the fixed charge coverage ratio. (Round your answer to 2 decimal places.) Fixed charge coverage
Net Income Interest (Loss) $ 185, 000 179, 600 157, 250 188, 100 Expense $ 59, 200 Income Taxes $ 46, 250 64,656 66, 045 90, 288 a. b. 80, 820 44,030 11, 286 c. d. 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 Earned Ratio Coverage Which company indicates the strongest ability to pay interest expense as it comes due? Which company indicates the strongest ability to pay interest expense as it comes due? < Times Interest Earned Ratio
and is more important than reported profits by a company. Guided by this knowledge, none of them Question 1 understanding about a firm's long-term cash flow situation? Discuss briefly in no more than 100 words
A company reports the following:Income before income tax $4,000,000Interest expense 400,000Determine the times interest earned ratio. Round to one decimal place.
QUESTION: Panda Inc.'s net income for the most recent year was $15,985. The tax rate was 35 percent. The firm paid $3,886 in total interest expense and deducted $2,565 in depreciation expense. What was the company's cash coverage ratio for the year?
Provide correct answer for this question
Give me answer for this question
Please help me with show all calculation thanku
Thrasher Company reported income before taxes of $180,000. The company is in a 30% income tax bracket. Also, Thrasher's income statement contained a charge for interest expense amounting to $60,000. Based on this information alone, what is the company's times-interest-earned ratio? Multiple Choice 4.0 3.1 2.1 3.0
In a recent year, Cullumber Corporation had net income of $746000, interest expense of $146000, and a times interest earned ratio of 9. What was Cullumber Corporation's income before taxes for the year? Select answer from the options below $1168000 $943111 $1460000 $1314000
The following information is available for Tamarisk Corp. for the year ended December 31, 2022. Other revenues and gains $23,800 Other expenses and losses 4,000 Cost of goods sold 292,000 Sales discounts 4,600 Sales revenue 760,000 Operating expenses 221,000 Sales returns and allowances 10,800 Prepare a multiple-step income statement for Tamarisk Corp. The company has a tax rate of 25%.
Find in Amount ($) and Percentage(%) for Year 2 over Year 1: Income Statement - (a) Operating Expense and interest expense (b) Earnings before income taxes (c) Income tax expenses