Earnings before interest and taxes-interest expense-tax expense=Net income
Earnings before interest and taxes-4300-30,000=26000
Earnings before interest and taxes=26000+30,000+4300
=$60300
Times interest earned=Earnings before interest and taxes/interest expense
=60300/4300
=14.02(Approx).
Exercise 9-10 Number of times interest earned LO 9-3 The following data come from the financial...
The following data come from the financial records of Adams Corporation for 2018: Sales Interest expense Income tax expense Net income $845,000 5,800 26,000 30,000 Required How many times was interest earned in 2018? (Round your answer to 2 decimal places.) Interest Damod 9.65 times
Exercise 9-16 Computing and interpreting times interest earned LO A1 Use the following information from separate companies a through d: Net Income (Loss) Interest Expense Income Taxes a. $ 146,000 $ 55,480 $ 36,500 b. 140,600 37,962 50,616 c. 124,100 54,604 52,122 d. 149,100 8,946 71,568 Compute times interest earned. Which company indicates the strongest ability to pay interest expense as it comes due?
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
Exercise 9-14 Computing and interpreting times interest earned LO A1 Use the following information from separate companies a through f. ܝܺܛ ܢܽܘ ;; ܦܶ ܗ̇ Net Income (Loss) $124,000 118,600 127,180 105,400 80,600 (34,720) Interest Expense $62,000 35,580 7,626 25, 296 7,254 75,690 Income Taxes $31,000 42,696 61,008 44,268 30, 628 Compute times interest earned. Times Interest Earned Ratio Choose Numerator: 1 Choose Denominator: Company Ratio income before interest & taxes : Interest expense 0 times 0 times Compute times...
E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio (LO 10-5) At May 31, 2016, FedEx Corporation reported the following amounts (in millions) in its financial statements; 2015 $12,100 7,018 Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income 2016 $12,960 7,776 270 300 1,050 Required: 1.Compute the debt-to-assets ratio and times interest earned ratio for 2016 and 2015. (Round your answers to 2 decimal places.) 2016 2015 Debt-to-Assets Times Interest Eamed Ratio 2-a. Creditors...
Given the financial data construct income statement Times interest earned 4 times tax rate 40% cost of goods sold to sales 70% sales 150,000 interest expense as %of sales 3%
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
8. Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $150,000 $235,000 Current maturities of serial bonds payable 310,000 310,000 Serial bonds payable, 10% 1,630,000 1,940,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 920,000 920,000 Retained earnings 3,180,000 2,520,000 The income before income tax was $679,000...
Exercise 3-21 (Algorithmic) (LO. 7) Simon, age 12, generates $6,320 interest income and no earned income for 2018. He incurs no investment expenses. Click here to access the 2018 tax rate schedule and 2018 Estate and Trust Tax Rate Schedule. If required, round the tax liability the nearest dollar. a. Simon's net unearned income. $ b. Simon's total Federal income tax liability. $
HW-CH 9 QS 9-12 Times interest earned LO A1 Park Company reports interest expense of $145,000 and income before interest expense and income taxes of $1.885,000 (1) Compute its times interest earned (2) Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest payments if the economy turns bad? References Complete this question by entering your answers in the tabs below. Required i Required 2 Compute its times interest...