Homework Answers
Interest earned ratio:
=Net income before interest &tax expense/Interest expense
=($30000+$5800+$26000)/$5800
=$61800/$5800
=10.66 Times
Interest earned ratio =10.66 Times
Add Answer to:
The following data come from the financial records of Adams Corporation for 2018: Sales Interest expense...
Exercise 9-10 Number of times interest earned LO 9-3 The following data come from the financial...
Exercise 9-10 Number of times interest earned LO 9-3 The following data come from the financial records of Jordan Corporation for 2018: Sales Interest expense Income tax expense Net income $845,000 4,300 30,000 26,000 Required How many times was interest earned in 2018? (Round your answer to 2 decimal places.) Interest earned times times
The following data were taken from the financial records of Glum Corporation for 2017: Sales Bond...
The following data were taken from the financial records of Glum Corporation for 2017: Sales Bond interest expense Income taxes Net income $3,600,000 120,000 600,000 800,000 Required: How many times was bond interest earned in 2017? (Round your answer to 2 decimal places.) Interest coverage times times
The Adams Corporation reported the following income statement for 2018 and comparative balance sheet for 2018...
The Adams Corporation reported the following income statement for 2018 and comparative balance sheet for 2018 and 2017, along with transaction data for 2018: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) (Click the icon to view the additional data.) Prepare Adams Corporation's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities by the indirect method. (Use a minus sign or parentheses for...
Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December...
Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (2016: $191,000) Common stock, December 31 $422,000 119,000 55,560 8,650 314,000 210,000 $269,000 75,000 63,200 7,500 240,000 231,000 The average number of shares outstanding was 7,810 for 2018 and 6,880 for 2017 Required Compute the following ratios for Finch for 2018 and 2017. a. Number of times interest was earned. (Round your answers to 2 decimal places.) b. Earnings per share based on...
The following financial information was obtained from the year ended 2018 income statements for Green Automotive...
The following financial information was obtained from the year ended 2018 income statements for Green Automotive and Stanley Automotive: m(Click the icon to view the financial information.) Requirements 1. Compute the times-interest-earned ratio for each company. Round to two decimals. 0 Data Table 2. Which company was better able to cover its interest expense? Green Stanley Net Requirement 1. Compute the times-interest-earned ratio for each company. Round to two decimals. Begin by showing the formula for the times-interest-earned ratio. Times-interest-earned...
The following financial information was summarized from the accounting records of Train Corporation for the current...
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $46,100 $30,000 Direct operating expenses 27,800 22,900 Sales 91,300 65,600 Interest expense $2,400 General overhead 19,400 Income tax 4,500 The net income for Train Corporation is a.$3,800 b.$80,800 c.$30,100 d.$67,400
E11-24 (similar to) The following financial information was obtained from the year ended 2018 income statements...
E11-24 (similar to) The following financial information was obtained from the year ended 2018 income statements for Wilson Automotive and Steinbeck Automotive: E (Click the icon to view the financial information.) Requirements 1. Compute the times-interest-earned ratio for each company. Round to two decimals. 2. Which company was better able to cover its interest expense? Requirement 1. Compute the times-interest-earned ratio for each company. Round to two decimals. Begin by showing the formula for the times-interest-earned ratio. Times-interest-earned ratio %3D...
The following financial information was obtained from the year ended 2018 income statements for Cash Automotive...
The following financial information was obtained from the year ended 2018 income statements for Cash Automotive and Pennington Automotive: (Click the icon to view the financial information.) Requirements 1. Compute the times-interest-earned ratio for each company. Round to two decimals. 2. Which company was better able to cover its interest expense? Requirement 1. Compute the times-interest-earned ratio for each company. Round to two decimals. Begin by showing the formula for the times-interest-earned ratio. Times-interest-earned ratio $ Net income Income tax...
88) The times interest earned ratio of Whitney Corporation is 3.0. The interest expense for the...
88) The times interest earned ratio of Whitney Corporation is 3.0. The interest expense for the year is $21,000, and the corporation's tax rate is 40%. The corporation's after-tax net income must be: A) $63,000 B) $25,200 C) $30,000 D) $42,000
Timpanogos Inc. is an accrual-method calendar-year corporation. For 2018, it reported financial s...
Timpanogos Inc. is an accrual-method calendar-year corporation. For 2018, it reported financial statement income after taxes of $1,552,000. Timpanogos provided the following information relating to its 2018 activities Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value Charitable contributions Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments...
Exercise 9-10 Number of times interest earned LO 9-3 The following data come from the financial records of Jordan Corporation for 2018: Sales Interest expense Income tax expense Net income $845,000 4,300 30,000 26,000 Required How many times was interest earned in 2018? (Round your answer to 2 decimal places.) Interest earned times times
The following data were taken from the financial records of Glum Corporation for 2017: Sales Bond interest expense Income taxes Net income $3,600,000 120,000 600,000 800,000 Required: How many times was bond interest earned in 2017? (Round your answer to 2 decimal places.) Interest coverage times times
The Adams Corporation reported the following income statement for 2018 and comparative balance sheet for 2018 and 2017, along with transaction data for 2018: (Click the icon to view the comparative balance sheet.) (Click the icon to view the income statement.) (Click the icon to view the additional data.) Prepare Adams Corporation's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities by the indirect method. (Use a minus sign or parentheses for...
Net sales Income before interest and taxes Net income after taxes Interest expense Stockholders' equity, December 31 (2016: $191,000) Common stock, December 31 $422,000 119,000 55,560 8,650 314,000 210,000 $269,000 75,000 63,200 7,500 240,000 231,000 The average number of shares outstanding was 7,810 for 2018 and 6,880 for 2017 Required Compute the following ratios for Finch for 2018 and 2017. a. Number of times interest was earned. (Round your answers to 2 decimal places.) b. Earnings per share based on...
The following financial information was obtained from the year ended 2018 income statements for Green Automotive and Stanley Automotive: m(Click the icon to view the financial information.) Requirements 1. Compute the times-interest-earned ratio for each company. Round to two decimals. 0 Data Table 2. Which company was better able to cover its interest expense? Green Stanley Net Requirement 1. Compute the times-interest-earned ratio for each company. Round to two decimals. Begin by showing the formula for the times-interest-earned ratio. Times-interest-earned...
E11-24 (similar to) The following financial information was obtained from the year ended 2018 income statements for Wilson Automotive and Steinbeck Automotive: E (Click the icon to view the financial information.) Requirements 1. Compute the times-interest-earned ratio for each company. Round to two decimals. 2. Which company was better able to cover its interest expense? Requirement 1. Compute the times-interest-earned ratio for each company. Round to two decimals. Begin by showing the formula for the times-interest-earned ratio. Times-interest-earned ratio %3D...
The following financial information was obtained from the year ended 2018 income statements for Cash Automotive and Pennington Automotive: (Click the icon to view the financial information.) Requirements 1. Compute the times-interest-earned ratio for each company. Round to two decimals. 2. Which company was better able to cover its interest expense? Requirement 1. Compute the times-interest-earned ratio for each company. Round to two decimals. Begin by showing the formula for the times-interest-earned ratio. Times-interest-earned ratio $ Net income Income tax...
88) The times interest earned ratio of Whitney Corporation is 3.0. The interest expense for the year is $21,000, and the corporation's tax rate is 40%. The corporation's after-tax net income must be: A) $63,000 B) $25,200 C) $30,000 D) $42,000
Timpanogos Inc. is an accrual-method calendar-year corporation. For 2018, it reported financial statement income after taxes of $1,552,000. Timpanogos provided the following information relating to its 2018 activities Life insurance proceeds as a result of CEO's death Revenue from sales (for both book and tax purposes) Premiums paid on the key-person life insurance policies. The policies have no cash surrender value Charitable contributions Interest income on tax-exempt bonds Interest paid on loan obtained to purchase tax-exempt bonds Rental income payments...
Most questions answered within 3 hours.
-
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 1 minute from now -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 10 seconds from now -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 12 seconds ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 7 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 17 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 37 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 45 minutes ago -
. 0.67 g of Ag is deposited electrolytically from
AgNO3 after a certain period of time...
asked 46 minutes ago -
assuming that the boric acid, h3po3 present at the end of the
borax tritation has a...
asked 45 minutes ago -
When a carbonate solution is acidified, carbon dioxide is
produced.
2H+(aq) + CO32-(aq) → H2O(l) +...
asked 1 hour ago -
A reaction has the following rate law: Rate =
kr[A][B]2. In experiment 1, the
concentrations of...
asked 1 hour ago -
king owns a large number of public pay phones. as rhe use of
payphones decline deamatically,...
asked 1 hour ago