Ron Landscaping's income statement reports net income of $75,700, which includes deductions for interest expense of $13,000 and income taxes of $36.700. Its times interest earned is: Select one: O A. 9.6 times O B. 3.8 times O C. 6.8 times O D. 5.8 times O E. 0.17 times

Ron Landscaping's income statement reports net income of $75,700, which includes deductions for interest expense of $13,000 and income taxes of $36.700. Its times interest earned is: Select one: O A. 9.6 times O B. 3.8 times O C. 6.8 times O D. 5.8 times O E. 0.17 times

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 32BEB

See similar textbooks

Related questions

Q: what is the equation you used for determining the corporations earning share for 2024 and what was…

A: Stockholders’ equity refers to the ownership interest in the business. It is the claim of the owners…

Q: For this accounting problem, how do I determine the balance of each shareholders equity account at…

A: A company's balance sheet shows an account called Stockholders Equity, or simply Equity, which is…

Q: Joe & Sandra

A: [1] Box 1: Box 1 reports your total taxable wages or salary for federal income tax purposes.. The…

Q: Acme Company's production budget for August is 18,500 units and includes the following component…

A: Material variance is the difference between standard material cost for actual production and actual…

Q: Problem 11-2A (Algo) Entries for payroll transactions LO P2, P3 On January 8, the end of the first…

A: Answer:- Payroll taxes are the percentage of employee's salary that an employer has to pay it to the…

Q: 21 Blossom Lid's Ltd's statement of financial position at December 31, 2024, is presented below. 24…

A: Journal entry : Method of recording financial transactions in the book of original entry by debiting…

Q: Markus Company’s common stock sold for $1.75 per share at the end of this year. The company paid a…

A: Dividend payout ratio = Dividends per share / Earnings per shareDividend yield = Dividends per share…

Q: An innovator is more likely to rely on information from an impersonal source (such as an article in…

A: AN INNOVATOR IS AN INDIVIDUAL WHO INTRODUCES NEW IDEAS , METHODS , PRODUCTS , OR PROCESSES , OFTEN…

Q: Blossom's values its inventory using at the lower-of-cost-or-net-realizable value, which is $8680.…

A: As per IFRS, inventory is valued at cost or net realisable value whichever is lower.The cost of…

Q: Financial statements of Rukavina Corporation follow: Comparative Balance Sheet Assets: Cash and cash…

A: It is a financial statement that shows the increase or decrease in the cash and cash equivalents…

Q: a. Compute the following performance metrics for each program: (1) Average number of shipping errors…

A: Shipping procedure basically involves all the processes from receiving an order till delivering it…

Q: a. Complete the sales budget by filling in the missing amounts. b. Determine the amount of sales…

A: The sales budget is referred to a financial forecast that outlines the expected sales revenues for a…

Q: Neuhaus Corporation manufactures one product. It does not maintain any beginning or ending Work in…

A: Variance analysis : Analysis of differences between planned and actual behavior. After analyzing…

Q: What would be the return on common stockholders' equity, earnings per share, payout ratio, and debt…

A: Ratio analysis: The ratio measures the company's financial performance and progress over time. It…

Q: Pearl Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning…

A: A lease is defined as a contractual agreement incorporated between two business entities where one…

Q: Thomas conducts all sales on account. They began the year with A/R of $100,000 and a credit balance…

A: Under allowance method of recording uncollectible receivables, bad debt expense is debited and…

Q: 4. Prepare a direct labor cost budget for March. FOLLOW UP for question #4

A: Budget is the estimation of revenue and expenses prior to starting the operation. To manage the…

Q: Global Corporation had 49,000 shares of $20 par value common stock outstanding on July 1. Later that…

A: Lets understand the basicsStock dividends are dividends paid to the shareholders in the form of…

Q: Caiman Energy had the following accounts and balances on December 31, 2022: Accounts Receivable…

A: CURRENT LIABILITIESCurrent Liabilities are short term obligation & Liabilities which is due with…

Q: Partners Matero and Malaya each have a P200,000 capital balance and share profits and losses in a…

A: Whenever a partnership is liquidated, first non cash assets are sold out, their gain or loss will be…

Q: Mountain High Ice Cream Company transferred $70,000 of accounts receivable to the Prudential Bank.…

A: Accounts receivableAccounts receivable means the payment is yet to be made for the work that is…

Q: Bandar Industries manufactures sporting equipment. One of the company's products is a football…

A: Lets understand the basics.Material price variance is a variance between the rate at which material…

Q: Pink Petunias, a wholesale nursery, is considering purchasing a new plot of land for their business…

A: Payback period is the length of time in which an investment reaches its break-even point. In other…

Q: Required: 1. Prepare all appropriate journal entries related to the investment during 2024. Note: If…

A: The company can invest in shares of another company and it is generally accounted for using equity…

Q: ServicePro provides two kinds of services. During the most recent accounting period, the two service…

A: Sunk Cost :— It is the cost that are already incurred in past and now irrecoverable. Financial…

Q: In 2024, KP Building Incorporated began work on a four-year construction project (called Cincy One).…

A: Cost allocation is used in analyzing or identifying the process to assign the cost to people, and…

Q: Prepare an answer sheet with the column headings shown here. For each of the following transactions…

A: An official record of the financial activities and status of a company, person, or other entity is…

Q: rrent Attempt in Progress n providing accounting services to small businesses, you encounter the…

A: Journal entryThe act of maintaining or creating the records of any transactions, whether they are…

Q: Borden Corporation is undergoing Chapter 7 liquidation . Currently it has cash of $ 130,000 ,…

A: Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a legal process that can help…

Q: Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly…

A: The cash budget is prepared to record the cash receipts and cash disbursements during the period.…

Q: Why is the answer $720,000? Can someone walk me through this?

A: The objective of the question is to determine the amount by which the net income for the current…

Q: Complete the table below using the exponential decay formula. Original Decay Rate per Amount Year…

A: N(t)= N(0) x e^-ktwhereN(t) = Final amount after decayN(0) = Original Amountk= Decay Ratet= Time…

Q: Ms. Schmidt didn't request an extension of time to file a 2022 income tax return and didn't mail the…

A: It is the punishment for violating laws. The violation includes non-filing of return, incorrect…

Q: Jennifer Company accumulates the following data concerning raw materials in making its finished…

A: Standard costing is one of the costing technique in business, under which standard or budgeted costs…

Q: Five Measures of Solvency or Profitability The balance sheet for Quigg Inc. at the end of the…

A: RATIO ANALYSISRatio analysis is the process of determining and interpreting numerical relationships…

Q: Maria Lowell inves

A: The owners of a private company have limited liability. The company's liability cannot be assumed as…

Q: Why is the answer 21.3%?

A: The objective of the question is to calculate the effective interest rate that Mike's Bikes is…

Q: Melissa recently paid $400 for round-trip airfare to San Francisco to attend a business conference…

A: Deductible business expenses are expenses that a business incurs in order to earn income or conduct…

Q: On January 1, Year 1, Jing Company purchased office equipment that cost $15,500 cash. The equipment…

A: The depreciation is provided to match revenues with the costs. The depreciation is a non cash…

Q: Assume that ACW Corporation has 2023 taxable income of $1,900,000 for purposes of computing the §179…

A: §179 expenses allow businesses to deduct the cost of qualifying property immediately rather than…

Q: Williams Company issued 200 of as 8 $1,000, 5-year bonds on January 1, 2023 On that date, the market…

A: Issue price of bonds is the present value of the interest annuity & maturity amount at market…

Q: The Suspenders Division of Roarie's Menswear had the following results last year. Sales Operating…

A: Capital turnover, which is also referred to as asset turnover or investment turnover, is a financial…

Q: An investor purchased a stock one year ago for $83.00. It paid an annual cash dividend of $3.76…

A: The objective of the question is to calculate the total return earned by the investor and to…

Q: Bonita Company uses a standard cost accounting system. During January, the company reported the…

A: Income statement The income statement is an important financial statement of a company. It is also…

Q: eridan Company's standard labor cost per unit of output is $22.00 (2.00 hours x $11 per hour).…

A: Standard costs are the costs based on estimates. At year end the standard costs are compared with…

Q: Common stock, $8 par value, 111,000 shares authorized Preferred stock, 14 percent, par value $10 per…

A: A partial balance sheet provides the reader with a concise summary of important financial details…

Q: Rosie's Company has three products, P1, P2, and P3. The maximum Rosie' s can sell is 65, 300 units…

A: In the given question, the number of production hours are limited to 110100 hours. Therefore, the…

Q: ! Required information [The following information applies to the questions displayed below.] The…

A: The dividend is declared to the shareholders from the retained earnings of the business. The…

Q: (d) Sum-of-the-years'-digits method for 2027 (e) Double-declining-balance method for 2026 LA LA

A: Depreciation is the reduction in the value of asset due tonormal wear and tearEffluxion of…

Q: Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent's interest was acquired…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Question

Please do not give solution in image format

Ron Landscaping's income statement reports net income of
$75,700, which includes deductions for interest expense of
$13,000 and income taxes of $36.700. Its times interest earned
is:
Select one:
O A. 9.6 times
O B. 3.8 times
O C. 6.8 times
O D. 5.8 times
O E. 0.17 times

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: Introducing Time Interest Earned Ratio

VIEW

Step 2: Calculate the Time Interest Earned Ratio

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

Base on the income statement below, and if my Ave total assets is 1,725.What is my Return on assets? Formula:Return on Assets = Net Income (before Interest znd Tax) / Average Total assets Thanks in Advance, expert!
Consider the following data extracted from an after-tax cash flow calculation. Before-Tax-and-Loan = $22,500 Loan Principal Payment = $5,926 Loan Interest Payment = $2,400 MACRS Depreciation Deduction = $16,665 Which of the following is closest to the Taxable Income? a. −$2,491. b. −$91. c. $3,435. d. $14,174
Using this data, compute the company’s value of interest coverage ratio:Net Income: 140Income tax expense: 110Interest expense: 50a) 6b) 3.75c) 4.75d) 6.25
K Compute the amount of interest for $247.00 at 8.28% p.a. from November 22, 2006 to September 18, 2007. The interest earned is $ im
Consider the following data extracted from an after-tax cash flow calculation. Before-Tax-and-Loan = $22,500 Loan Principal Payment = $7,434 Loan Interest Payment = $892 MACRS Deduction = $7,405 Taxes Due = $3,550.75Which of the following is closest to the after-tax cash flow? a. $1,372 b. $8,777 c. $10,623 d. $16,211
What is the fixed charge coverage ratio? Answer in the form of 3.2x (one decimal place) Assume: 1. Tax rate - 25% 2. Depreciation - $2mm 3. Capital Expenditures - $3mm 4. Pre-tax net Income - $20mm 5. Interest expense - $4mm 6. Debt due within one year - $7mm 7. Accounts receivable - $2.5mm
Last year Sherlock had an annual earned income of S58,475. He also had passive income of $1,255, and capital gains of $2,350. What was Sherlock's total gross income for the year? a. $58.475 b. 559.730 c. 560 985 d.562.080
Use the table and find the income tax for an income of 279,000
The total tax on an income of $256,600 is: Select one: a. $96,194 b. $113,900 c. $112,944 d. $128,544 e. $83,324 ???
Assume the following: Revenue = $1,500; COGS = $450; SGA = $300; EBIT = $600; Taxable income = $525; Net Income = $315. What is Taxes? 29% 8% 14% 40%
Given the following information, compute Peach Company’s income taxes paid Decrease in income taxes payable …… $ 600 Income tax expense …………. 4,400 Please provide explantion
Based on the following data, calculate the items requested: Rental Costs Annual rent Insurance Security deposit $ 7,780 $185 $ 850 Rental cost Buying cost Buying Costs Annual mortgage payments Property taxes Down payment/closing costs Growth in equity Insurance/maintenance Estimated annual appreciation Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Assume this individual has other tax deductions that exceed the standard deduction amount. $ 10,600 (9,775 is interest) $ 1,940 $5,300 $825 $ 1,450 $ 2,100 a. Calculate total rental cost and total buying cost. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) b. Would you recommend buying or renting? P