Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1,885,000. (1) Compute its times interest earned. (2) Park’s competitor’s times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad?

Q: Made Answer

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

Q: Luxury Goods Group, an Italian company that sells sunglasses, reported net sales of €6.3 billion in…

A: GROSS PROFIT PERCENTAGE : (GROSS PROFIT / SALES) X 100

Q: Calculate retum on net operating assets and net borrowing costs for 2021.

A: A financial statement that records all the expenses and revenues during the period is known as an…

Q: Which of the statements is Not True about the Financial Expenses Coverage Ratio? a)     Its general…

A: Financial Expense Coverage Ratio - It another word we can also known as interest coverage ratio. It…

Q: You are given the following information for Sookie’s Cookies Co.: sales = $60000; costs = $37400;…

A: Depreciation is an accounting technique that allocates capital expense over the life of capital…

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.25, an interest burden of 0.7, and a…

A: The conceptual formula is represented mathematically:

Q: Calculate the net profits (after taxes) for the following cash flows. The cash flows have not been…

A: Introduction:- Net income is the amount of profit a obtained by companies after paying all expenses…

Q: Following are the income statement and some additional information for Carolina Consulting Company.…

A: Sales were on credit and accounts receivable decreased by $940 in 2024 compared to 2023. This means…

Q: The Johnson's Company had net income(after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times Interest Earned is the ratio that depicts how many times the organization can cover its…

Q: Ans

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

Q: need correct answer

A: To determine Valley Sales, Inc.'s net income for 2009 under both cash and accrual basis accounting,…

Q: Your pro forma income statement shows sales of $982,000, cost of goods sold as $482,000,…

A: Earnings before interest and taxes: Earnings before interest, depreciation and taxes are the…

Q: The Johnson's Company had net income (after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times interest earned ratio is a ratio calculated to determine how many times the earnings available…

Q: During the year, the Senbet Discount Tire Company had gross sales of $1.09 million. The company's…

A: Sales = s = $1.09 millionCost of goods Sold = cogs = $578,000Selling Expenses = se = $231,000Notes…

Q: JR's Jigsaws had Sales of $20,000 in the current year. The Cost of Goods Sold was  $13,000,…

A: Earnings Before Interest and Taxes(EBIT) : EBIT is the level of earning that comes after paying all…

Q: Yaya Inc. has earnings before interest and taxes of P4,750,000. The company’s total depreciation and…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Damita Company reported net income of $52,525 and net sales of $485,000 for the current year. (a)…

A: Profit margin means the percentage profit earned by the entity on its sales revenue. It is…

Q: Suppose the Tax Code is "Percetage Tax - 3% of Sales", the presented income statement is correct.…

A: False, with regard to date, since December 31, 2022 has not yet arrived, so income statement upto…

Q: Carson's Bakery had Gross Sales of $200,000. The company was charged $1,000 in credit card fees,…

A: Net sales are the resulted amount of deducting Sales return, allowance, and credit card fee from the…

Q: of goods sold term debt revenue) ng 12,000 90,555 100,000 241,055 175,000

A: To calculate the net income for Peter Cookies, the expenses incurred and income tax must be reduced…

Q: Rahul

A: The Carolina Consulting Company's cash flow statement shows a net inflow of $8,420 from operating…

Q: York Inc. had a loan outstanding during the month, and at the end of the month they paid interest…

A: • Revenue - It means the income by way of operations or any other activity. (Main activities)•…

Q: Merle Company pays $1,000 for this month’s rent in cash. The effect to Assets would be: Merle…

A: Accounting equation is based on the double entry system which shows the effect of transactions on…

Q: Please answer the following 2 questions: 10. A decrease in Accounts Payable should be added to the…

A: Answer: Net Income $165,000 Adjustments for non-cash items: Gain on sale of land ($20,000) Changes…

Q: A company's reported earnings are $2,000 and cash flows are $1,600. Based on economic conditions…

A: A measure of how closely earnings correspond to earnings reported without management bias.…

Q: Patel Company has a return on assets of 4.5% a) Explain the meaning of this result. b) Is Patel…

A: Return on Assets: ROA is Return (i.e., Firm's Net Income) on Total Assets which shows the earnings…

Q: The net profit margin tells how much profit a company makes for every dollar it generates in…

A: given N= net income I = income before tax Tax rate = 20% M(N,R) = NR

Q: By what percentage can Hee-Hee Systems, Inc.'s operating profit fall before its operating profit is…

A: interest earned ratio =EBIT/interest  3=EBIT/interest  EBIT =3 × interest

Q: Presented below are four different transactions related to materiality. Explain whether you would…

A: Most of the companies and the auditors has made the rule that any item which is under 5% of net…

Q: Comment on the liquidity of the two companies. Which company has more risk of not satisfying its…

A: Operating Cycle is summation of Inventory Period and Account Receivable Period. That is, the period…

Q: A company has 14,000 in cash, 37,000 in accounts recievable, 2,500 in supplies, 52,000 in accounts…

A: Current assets are assets in the form of cash or can be converted into cash within a year.Current…

Q: na purchased an equipment from Nightshade worth P1,000,000. Mirana only paid 30% as down payment 10.…

A: Answer to 10 . Calculat of Accounts Payable. Purchase price of equipment = P1000000 Down payment =…

Q: LEKTOL LTD. reported income tax expense for the year of $4 million. Interest payable decreased by $1…

A: Income tax means the mandatory payment made by assessee to the government on the amount of income…

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: Current Ratio of a Company is 2.4: 1 and its Current Liabilities are 2,00,000. Subsequently, it sold…

A: CURRENT RATIOCurrent Ratio is the ratio between current assets & current liabilities. Current…

Q: A company had interest expense of $6,600, income before interest expense and income taxes of…

A: Ratio analysis used identify the business performance of the company. It is used to measure…

Q: The ABC Co. delivered $5,000 worth of window washing services in 2021 but only collected $4,300 in…

A: Cash basis of accounting and accrual basis of accounting are two type of accounting systems that can…

Q: A company's tax rate is 33% and its interest expense is $18,500. In addition, its cost of goods sold…

A: Tax Rate = t = 33%Interest Expenses = i = $18,500Cost of Goods Sold Rate = cogsr = 61%Depreciation…

Q: Need Help

A: Reference:Team, C. (2024b, May 12). Income statement. Corporate Finance Institute.…

Q: Thrasher Company reported income before taxes of $180,000. The company is in a 30% income tax…

A: Times interest earned ratio =  Earnings before interest and tax / Interest expense Earnings before…