FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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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.
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- How do I calculae the times interest earned ratio?arrow_forwardse the following selected financial statement information from Black Water Industries. BLACK WATER INDUSTRIES Year Net Credit Sales Ending Accounts Receivable 2017 $687,430 $332,250 2018 705,290 362,450 2019 769,500 403,650 A. Compute the number of days’ sales in receivables ratios for 2018 and 2019. Round your answers to two decimal places. 2018 fill in the blank 1 days 2019 fill in the blank 2 days B. Using the sales in accounts receivable, choose the statement that most closely describes the company's management of its receivables. a. The company collects its accounts slowly, and the days are increasing. b. This may be leave the company unable to pay current debt owed to a lender. c. The company may need to be more aggressive with its receivable collection procedures. d. All of the above statements may be correct.arrow_forward3arrow_forward
- Ashvinarrow_forwardDuring the current year, Sokowski Manufacturing earned income of $346,500 from total sales of $5,500,000 and average capital assets of $12,700,000. What is the sales margin? If required, round your answer to one decimal place. fill in the blank %arrow_forwardIf our gross profit is $97,218,350 and our adjusted revenue is $123,518,520 what is our profit margin (use an excel spreadsheet to get your answer, enter your answer as a percent, round to 1 decimal place)?arrow_forward
- If net income was $12,000, interest expense was $6,000, and taxes were $2,000, what is the operating profit margin if sales were $60,000? (Express your answer to one decimal place.) Check Answerarrow_forwardJournalize the following transactions for the Scott Company. Assume 360 days per year. November 4: Received a $6,500, 90-day, 6% note from Tim's Co.in payment of the account. If an amount box does not require an entry, leave it blank. Nov. 4 December 31: Accrued interest on the Tim's Co. note. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. Dec. 31 February 2: Received the amount due from Tim's Co. on the note. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places. Feb. 2arrow_forwardThe following information is available for Skysong Corp. for the year ended December 31, 2025. Other revenues and gains $21,600 Other expenses and losses 3,000 Cost of goods sold 281,000 Sales discounts 3,200 Sales revenue 746,000 Operating expenses 210,000 Sales returns and allowances 8,800 Prepare a multiple-step income statement for Skysong Corp. The company has a tax rate of 25%.arrow_forward
- Subject:arrow_forwardimes interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $241,000 $289,200 Income before income tax expense 2,988,400 3,354,720 a. Determine the number of times interest charges were earned for current Year and prior Year. Round to one decimal place. Current Year Prior Year b. Is the number of times interest charges are earned improving or declining?arrow_forwardThe 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%.arrow_forward
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