Homework Answers
...... Eqn (1)
Net cash generated by a company is given by, Cash = Cash generated from Operating activities + Cash generated from Investing activities + Cash generated from Financing activities
Details about the financing activities & investing activites are not given in question.
So let us calculate Cash generated from Operating activities.
Using Indirect Cash Flow method,
Cash from Operating activities = Net Income + Depreciation (non-cash charges) + Changes in Working capital
(Note: Also Changes in Working capital is not given.)
= 8175 + 1560 = 9735
Current liabilities = Interest Paid = 2380
Using these values in Eqn (1), 
=4.09
Such a high cash ratio would mean that the cash has to be managed properly by investing in short term instruments which would earn interest.
Add Answer to:
Calculating the Cash Coverage Ratio Tommy Badfinger Inc.'s net income for the most recent year was...
explain and answer please Calculating the Cash Coverage Ratio (LO2] Sherwood Inc.'s net income for the...
explain and answer please
Calculating the Cash Coverage Ratio (LO2] Sherwood Inc.'s net income for the most recent year was $13,168. The tax rate was 34 percent. The firm paid $3,605 in total interest expense and deducted $2,382 in depreciation expense. What was the cash coverage ratio for the year?
Ugh Inc.’s net income for the most recent year was 15,485. The tax rate was 20...
Ugh Inc.’s net income for the most recent year was 15,485. The tax rate was 20 percent. The firm paid 3,836 in total interest expense and deducted 2,515 in depreciation expense. What was the cash coverage ratio of the year?
Delectable Parsnip, Inc.’s, net income for the most recent year was $8,795. The tax rate was...
Delectable Parsnip, Inc.’s, net income for the most recent year was $8,795. The tax rate was 21 percent. The firm paid $4,653 in total interest expense and deducted $5,124 in depreciation expense. What was the company’s cash coverage ratio for the year?
Panda Inc.’s net income for the most recent year was $16,585. The tax rate was 35...
Panda Inc.’s net income for the most recent year was $16,585. The tax rate was 35 percent. The firm paid $3,946 in total interest expense and deducted $2,625 in depreciation expense. What was the company’s cash coverage ratio for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash coverage ratio times
Pop Evil, Inc.'s net income for the most recent year was $19,208. The tax rate was...
Pop Evil, Inc.'s net income for the most recent year was $19,208. The tax rate was 22 percent. The firm paid $3,856 in total interest expense and deducted $5,091 in depreciation expense. What was the cash coverage ratio for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash coverage ratio times
Delectable Parsnip, Inc.'s, net income for the most recent year was $10,512. The tax rate was...
Delectable Parsnip, Inc.'s, net income for the most recent year was $10,512. The tax rate was 34 percent. The firm paid $3,587 in total interest expense and deducted $5,673 in depreciation expense What was the company's taxable income for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Taxable income What was the company's EBIT for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
Delectable Parsnip, Inc.’s, net income for the most recent year was $9,312. The tax rate was...
Delectable Parsnip, Inc.’s, net income for the most recent year was $9,312. The tax rate was 34 percent. The firm paid $3,887 in total interest expense and deducted $5,073 in depreciation expense. What was the company’s taxable income for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Taxable income $ What was the company’s EBIT for the year? (Do not round intermediate calculations and round your answer to 2 decimal places,...
Calculating the Times Interest Earned Ratio For the most recent year
Calculating the Times Interest Earned Ratio For the most recent year, ICU Windows, Inc., had sales of $380,000, cost of goods sold of $110,000, depreciation expense of $32,000, and additions to retained earnings of $41,620. The firm currently has 30,000 shares of common stock outstanding, and the previous year's dividends per share were $1.50. Assuming a 34 percent income tax rate, what was the times interest earned ratio?
Quiz Q Finance 301-Quiz 1 Flash s Goat Farm Quiz #1 Fin 361 Saved Pop Evil,...
Quiz Q Finance 301-Quiz 1 Flash s Goat Farm Quiz #1 Fin 361 Saved Pop Evil, Inc.'s, net income for the most recent year was $10,198. The tax rate was 23 percent. The firm paid $3,440 in total interest expense and deducted $2.151 in depreciation expense. What was the cash coverage ratio for the year? Multiple Choice 6.57 times 6.98 times 5. 48 times 5.28 times 10.48 times KPre 17 of 20Next > O Type here to search
Problem 3-21 Calculating EFN The most recent financial statements for Scott, Inc., appear below. Sales for...
Problem 3-21 Calculating EFN The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 30 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales $ 746,000 Costs 581,000 Other expenses 17,000 Earnings before interest and taxes $ 148,000 Interest expense 13,000 Taxable income...
explain and answer please
Calculating the Cash Coverage Ratio (LO2] Sherwood Inc.'s net income for the most recent year was $13,168. The tax rate was 34 percent. The firm paid $3,605 in total interest expense and deducted $2,382 in depreciation expense. What was the cash coverage ratio for the year?
Pop Evil, Inc.'s net income for the most recent year was $19,208. The tax rate was 22 percent. The firm paid $3,856 in total interest expense and deducted $5,091 in depreciation expense. What was the cash coverage ratio for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash coverage ratio times
Delectable Parsnip, Inc.'s, net income for the most recent year was $10,512. The tax rate was 34 percent. The firm paid $3,587 in total interest expense and deducted $5,673 in depreciation expense What was the company's taxable income for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Taxable income What was the company's EBIT for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...
Quiz Q Finance 301-Quiz 1 Flash s Goat Farm Quiz #1 Fin 361 Saved Pop Evil, Inc.'s, net income for the most recent year was $10,198. The tax rate was 23 percent. The firm paid $3,440 in total interest expense and deducted $2.151 in depreciation expense. What was the cash coverage ratio for the year? Multiple Choice 6.57 times 6.98 times 5. 48 times 5.28 times 10.48 times KPre 17 of 20Next > O Type here to search
Most questions answered within 3 hours.
-
Need help with this, in JAVA, using netbeans. A
complete response will receive a positive comment...
asked 30 seconds ago -
An imprest petty cash fund of $600 was established for minor
disbursements. At the end of...
asked 5 minutes ago -
Sharpe Cutter is a small company that produces specialty knives
for paper cutting machinery. The annual...
asked 9 minutes ago -
Calculating the Ka of a weak acid from
pH:
The pH of a 0.68M solution of...
asked 11 minutes ago -
1.What process is pushing back against gravity in the very
center (the core) of sun-like stars?...
asked 30 minutes ago -
This question is from the textbook "Python for ArcGIS" by Laura
Tateosian:
Write a script "triangles.py"...
asked 29 minutes ago -
Which of the following is an impediment that makes it
difficult for firms to achieve the...
asked 30 minutes ago -
Calculate the amount of heat needed to boil 123.g of octane
(C8H18), beginning from a temperature...
asked 38 minutes ago -
my
prof asked us to make a problem set then we find solve it
Chi-Square Test...
asked 45 minutes ago -
In recent years, 80% of those accused of Driving Under the
Influence (DUI) get convicted (includes...
asked 55 minutes ago -
Why does Max Weber distinguish between "power," "authority," and
different types of authority? What is he...
asked 55 minutes ago -
What would the solow growth model look like if there was a
production function which had...
asked 1 hour ago