The times interest earned ratio of McHugh Company is 4.5 times. The interest expense for the...
The times interest earned ratio of McHugh Company is 4.5 times. The interest expense for the year was $20,000, and the company's tax rate is 40%. The company's net income is:
|
a |
$22,000. |
|
b |
$42,000 |
|
c |
$54,000 |
|
d |
$66,000 |
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The times interest earned ratio of McHugh Company is 4.5 times.
The interest expense for the...
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
Times interest earned The following data were taken from recent annual reports of Caliber Company, which...
Times interest earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Current Year Preceding Year Interest expense $49,000 $54,000 Income before income tax 411,600 345,600 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. Current year Preceding year b. Although Caliber Company had enough earnings to pay interest in the preceding year,...
eBook Calculator Times Interest earned The following data were taken from recent annual reports of Caliber...
eBook Calculator Times Interest earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Interest expense Current Year $54,000 448,200 Preceding Year $59,000 383,500 Income before income tax a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place, Current year in this ratio will be Preceding year b. Although Caliber Company had enough earnings...
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?
Times interest earned Berry Company reported the following on the company's income statement in two recent...
Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense Income before income tax expense $286,000 4,404,400 $343,200 5,045,040 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?
Times interest earned Berry Company reported the following on the company's income statement in two recent...
Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $419,000 $502,800 Income before income tax expense 5,656,500 5,832,480 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?
Times interest earned Berry Company reported the following on the company's income statement in two recent...
Times interest earned
Berry Company reported the following on the company's income
statement in two recent years:
Current
Year
Prior
Year
Interest expense
$425,000
$467,500
Income before income tax expense
6,587,500
6,872,250
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?
Times interest earned Berry Company reported the following on the company's income statement in two recent...
Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year $405,600 Interest expense Income before income tax expense $338,000 4,360,200 5,353,920 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?
1) the times interest earned ratio 2) the debt to equity ratio 3) the gross margin...
1) the times interest earned ratio
2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
$ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
10. Times-interest-earned (TIE) ratio The times-interest-earned (TIE) ratio shows how well a firm can cover its...
10. Times-interest-earned (TIE) ratio The times-interest-earned (TIE) ratio shows how well a firm can cover its interest payments with operating income. Compare the income statements of Lost Pigeon Aviation and Happy Turtle Transporters Inc. and calculate the TIE ratio for each firm. Lost Pigeon Aviation Income Statement For the Year Ended on December 31 Net Sales (Millions of dollars) 700 280 Variable costs Fixed costs 245 $525.00 Total Operating costs 175 Operating Income (or EBIT) Less interest 50 125 Earnings...
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
eBook Calculator Times Interest earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Interest expense Current Year $54,000 448,200 Preceding Year $59,000 383,500 Income before income tax a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place, Current year in this ratio will be Preceding year b. Although Caliber Company had enough earnings...
Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense Income before income tax expense $286,000 4,404,400 $343,200 5,045,040 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?
Times interest earned
Berry Company reported the following on the company's income
statement in two recent years:
Current
Year
Prior
Year
Interest expense
$425,000
$467,500
Income before income tax expense
6,587,500
6,872,250
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?
Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year $405,600 Interest expense Income before income tax expense $338,000 4,360,200 5,353,920 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?
1) the times interest earned ratio
2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
$ 960.000 2,700.000 3.600.000 260.000 7.520.000 9.520.000 $17,040,000 $ 1.200.000 300,000 1.800.000 2.000.000 200.000 5,500,000 9.050.000...
10. Times-interest-earned (TIE) ratio The times-interest-earned (TIE) ratio shows how well a firm can cover its interest payments with operating income. Compare the income statements of Lost Pigeon Aviation and Happy Turtle Transporters Inc. and calculate the TIE ratio for each firm. Lost Pigeon Aviation Income Statement For the Year Ended on December 31 Net Sales (Millions of dollars) 700 280 Variable costs Fixed costs 245 $525.00 Total Operating costs 175 Operating Income (or EBIT) Less interest 50 125 Earnings...
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