Answered: Times interest earned A company…

Times interest earned A company reports the following: Income before income tax expense $3,120,000 Interest expense 160,000 Determine the times interest earned. Round to one decimal place.

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: The following information is taken from the annual report of Coca-Cola Enterprises, Inc.: (amounts…

A: Accounts receivable turnover is calculated by dividing the Net credit sales by the Average accounts…

Q: Assume the Day sales outstanding (DSO) 36 days, Sales revenues $500,000, calculation based on 360…

A: Days sales outstanding is a financial metric that helps in determining the number of days that a…

Q: Calculate Days in Accounts Receivable. Total accounts receivable over 90 days: $18,105.50 A/R :…

A: Days in Accounts receivable is calculated by dividing total Receivables, net of credit by daily…

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: Accounts Receivable Analysis A company reports the following: Sales $275,940 Average accounts…

A: The accounts receivables turnover ratio tells about the efficiency of the business to convert its…

Q: Accounts Receivable Analysis A company reports the following: Sales $439,460 Average accounts…

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: A company reports the following income statement and balance sheet information for current year: Net…

A: Return on total assets: It is the ratio between the earnings of the company and the total assets.…

Q: Ortiz Lumber Yard has a current accounts receivable balance of $450,000 and accounts payable of…

A: Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes…

Q: A company reports the following income statement and balance sheet information for the current year:…

A: Formula: Return on Total Assets = ( Net Income + Interest expense ) / Average Total Assets Average…

Q: A company reports the following income statement and balance sheet information for current year: Net…

A: Theory concept: Return on Assets : It tells the net income earned on total assets used by the…

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

Q: Other revenue and expense: Other revenue Other expense Income before income tax Income tax expense…

A: In common size income statement each line item in income statement is shown as percentage of value…

Q: ccounts Receivable Analysis: A company reports the following Sales $649,700 64,970 Average accounts…

A: Ratio analysis: It is a method used to measure the liquidity, profitability, efficiency of the…

Q: Los Altos, Inc. has an accounts receivable turnover of 20. What is the company's average collection…

A: Formula: Average collection period = 365 days / Accounts receivable turnover. Division of 365 days…

Q: You are given the following income statements and balance sheets for Freddie M Corporation for…

A: The four financial statements prepared on the basis of these accounting records are Income…

Q: A company reports the following income statement and balance sheet information for the current year:…

A: Formula: Return on total Assets = Net Income / Average total Assets Division of Net income with…

Q: What is the number of days’ sales in receivables? Round to one decimal place. Group of answer…

A: Number of days' in receivables Days Sales Outstanding (DSO) represents the average number of days it…

Q: he companative financal satements of Mara Inc. ane a follows. The markt prie of Marshal comman stock…

A: Financial Ratios- A financial ratio or accounting ratio is a relative scale of two selected…

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: ccounts Receivable Analysis A company reports the following: Sales…

A: a) Account Receivable Turnover: Calculate the accounts receivable turnover as shown below: Account…

Q: Income before income taxes Income tax expense Net income $356,883 107,065 $249,818 Interest expense…

A: Times interest earned ratio is one of the financial ratio which helps in measuring ability of the…

Q: Return on Total Assets A company reports the following income statement and balance sheet…

A: Return on asset is a very important profitability ratio. It helps to know the % return achieved on…

Q: The following information was taken from the accounts receivable records of Pina Colada Corporation…

A: OutstandingBalance PercentageEstimated to beUncollectible Estimatedto beUncollectible 0 –…

Q: A company reports the following income statement and balance sheet information for the current year:…

A: Return on Total Assets= Earnings Before Interest and Tax/ Average Total Assets

Q: What is the accounts payable total on $112,000 with 2/10 net 30

A: Note: 2/10, n/30: Here, 2 represent the discount rate if payment is made within ten days. And if…

Q: AFA FINANCIAL ACCOUNTING equivalent to 5% of the receivables at that date. receivables expense?

A: Bad Debts:- These are those debts from whom the company is unable to collect debts. These are…

Q: Return on Total Assets A company reports the following income statement and balance sheet…

A: Return on total assets = (Net income + Interest expense) /Average total assets

Q: 6A. During the current year, Sokowski Manufacturing earned income of $489,887 from total sales of…

A: The sales margin is calculated as ratio of income and total sales.

Q: The Perry Company reported Accounts Receivable, Net of $66,400 at the beginning of the year and…

A: Sales are made on cash and credit basis. The amount to be collected from sales made on credit basis…

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: Return on total assets A company reports the following income statement and balance sheet…

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: 2019 2018 Net Sales |Cost of Goods Sold 3,412.0 P 1,998.0 1,200.0 978.9 Gross Profit 22120 1.019 1

A: Income statement shows the net income or net loss associated with the company.

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: 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: Income tax expenses Net income Sales Cost of goods sold Gross profit Selling expenses a. Prepare a…

A: HORIZONTAL ANALYSIS Horizontal Analysis is one of the importance analysis techniques of Financial…

Q: The net sale of a company is estimated to be SAR 384,000. How much will be the accounts receivable…

A: The ratio analysis helps to analyse the financial statements of the business. The account…

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: iven the above information, calculate the net income. Enter the value in 2 decimal places, Sales…

A: Time interest earned ratio show the ability of company to pay interest on time and it is the ratio…

Q: For Melissa Inc, compute the cash flow pertaining to: a) Cash collections from customers b) Cash…

A: Formula:Cash collections from customers = Sales + Decrease in accounts receivablesSum of both sales…

Q: 500, beginning accounts receivable of $3,100 and ending accounts receivable of $2,300 for the…

A: Day’s sales uncollected is the credit days allowed or the number of days sales remained uncollected.

Question

100%

Times interest earned

A company reports the following:

Income before income tax expense	$3,120,000
Interest expense	160,000

Determine the times interest earned. Round to one decimal place.

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

Return on Total Assets A company reports the following income statement and balance sheet information for the current year: Net income $661,910Interest expense 116,810Average total assets 6,280,000Determine the return on total assets. If required, round the answer to one decimal place.fill in the blank 1 %
The financial statements of the Sunland Company report net sales of $384000 and accounts receivable of $50400 and $33600 at the beginning of the year and the end of the year, respectively. What is the average collection period for accounts receivable in days?
Return on total assets A company reports the following income statement and balance sheet information for the current year: Net income $266,220 Interest expense 46,980 Average total assets 4,350,000 Determine the return on total assets. If required, round the percentage to one decimal place. %
compute number of days sales in receivables round your calculation and answer assume 365 days ina year
A company reports the following income statement and balance sheet information for the current year: Net income $132,370 Interest expense 11,510 Average total assets 2,180,000 Determine the return on total assets. Round the percentage to one decimal place.fill in the blank %
The following information is available from the annual reports of Pharoah Company and Novak Corp. Companies. Sales Beginning receivables, net Ending receivables, net 1. 2. 1. (In millions) 2. Pharoah Company $128,000 Based on the preceding information, compute the following for each company: (Round answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) 23,300 Accounts receivable turnover 16,300 Average collection period Novak Corp. $43,000 4,000 Accounts receivable turnover. (Assume all sales were credit sales.) Average collection period. 4,800 Pharoah Company times. days Novak Corp. times days.
If a company's accounts receivable turnover cycle is 4.3 times and the accounts receivable balance is $90,000, what is the value of the credited accounts?
s
How many days is the average collection period ahd what is the current ratio?
Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes. LANCASTER CORPORATION 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 $ 259,000 209,000 $ 50,000 24,500 $ 25,500 19,000 $ 6,500 2,275 $ 4,225
The following information was taken from the financial statements of Sunland Company: 2021 2020 Gross profit on sales $678,600 $760,000 Income before income taxes 205,400 225,000 Net income 260,000 225,000 Net income as a percentage of net sales 10% 9% Please show steps to finding answer Compute the cost of goods sold in dollars and as a percentage of net sales for each year. (Round percentages to 1 decimal place, e.g. 15.2%) 2021 2020 Cost of goods sold in dollars $enter a dollar amount $enter a dollar amount Cost of goods sold as a percentage of net sales nter percentages rounded to 1 decimal place % nter percentages rounded to 1 decimal place %
The company reports the following income statement results: Gross profit $500,000 Interest expense 15,000 Sales discounts 8,000 Net Sales Operating expense Effective tax rate $ $ $ 990,000 365,000 18% Calculate Sales. Calculate Income before Income tax (IBT). Calculate net income. % Calculate the gross profit margin (one decimal place) % Calculate the profit margin (two decimal places)