The higher the ratio of number of times interest charges earned, the lower the rick that...
The higher the ratio of number of times interest charges earned, the lower the rick that interest payments will not be made if earning decreased. its True?
Homework Answers
The answer is True.
The higher the ratio of number of times interest charges earned the higher the solvency of the company, so lower risk to that the interest will not be paid.
The ratio denotes the the earnings of company in number of times the interest paid.
Add Answer to:
The higher the ratio of number of times interest charges earned,
the lower the rick that...
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...
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 (Millions of dollars) Net Sales 700 Variable costs 280 Fixed costs 245 Total Operating Costs $525.00 175 Operating Income (or EBIT) Less interest 50 Earnings before...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges Earned The following data...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges Earned The following data were taken from the financial statements of Weal Construction, Inc. for December 31, 2016 and 20Y5: Dec. 31, 2016 Accounts payable and other liabilities $146,000 Current maturities of bonds payable 190,000 Dec. 31, 2045 $128,000 190,000 1,150,000 110,000 Serial bonds payable, 10%, issued 2008, due in five years 960,000 Common stock, $5 par value 170,000 Paid-in capital in excess of par 950,000 1,300,000 2,850,000...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were...
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 $340,000 $101,000 Current maturities of serial bonds payable 230,000 230,000 Serial bonds payable, 10% 930,000 1,160,000 Common stock, $1 par value 50,000 70,000 Paid-in capital in excess of par 550,000 550,000 Retained earnings 1,900,000 1,510,000 The income before income tax was $359,600 and...
8. Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data...
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...
charges were $12,500. What was the firm's times interest earned dno ratio orp's sales last year...
charges were $12,500. What was the firm's times interest earned dno ratio orp's sales last year were $$10,000, its operating costs were $362,500, and its interest a. 11.80 b. 8.85 c. 13.10 d. 12.15 e. 14.75
The times-interest-earned (TIE) ratio shows how well a firm can cover its interest payments with operating...
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 Purple Panda Importers and calculate the TIE ratio for each firm. Lost Pigeon Aviation Income Statement For the Year Ended on December 31 (Millions of dollars) Net Sales 1400 Variable costs 560 Fixed costs 490 Total Operating Costs $1,050.00 Operating Income (or EBIT) 350 Less interest 50 Earnings before Taxes (EBT) 300 Less taxes...
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market...
QUESTION 12: The higher the times interest earned, the better. True False QUESTION 13: The market to book ratio and price earnings ratio indicate the firm's liquidity the firm's ability to quickly liquidate investments and turn them into cash the firm's efficiency in generating funding by selling their common stock market sentiment toward the firm
Type your answer in the box. If the company's times interest earned ratio is 8 times...
Type your answer in the box. If the company's times interest earned ratio is 8 times and interest is $60,000, the company's earnings before interest and taxes is equal to (enter a whole number and include the dollar sign and commas, as appropriate).
The times-interest-earned ratio is 6.25 for Retailer A and 5.1 for Retailer B. This indicates that...
The times-interest-earned ratio is 6.25 for Retailer A and 5.1 for Retailer B. This indicates that Retailer B will find it easier to pay interest expense. true or false
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...
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 (Millions of dollars) Net Sales 700 Variable costs 280 Fixed costs 245 Total Operating Costs $525.00 175 Operating Income (or EBIT) Less interest 50 Earnings before...
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges Earned The following data were taken from the financial statements of Weal Construction, Inc. for December 31, 2016 and 20Y5: Dec. 31, 2016 Accounts payable and other liabilities $146,000 Current maturities of bonds payable 190,000 Dec. 31, 2045 $128,000 190,000 1,150,000 110,000 Serial bonds payable, 10%, issued 2008, due in five years 960,000 Common stock, $5 par value 170,000 Paid-in capital in excess of par 950,000 1,300,000 2,850,000...
charges were $12,500. What was the firm's times interest earned dno ratio orp's sales last year were $$10,000, its operating costs were $362,500, and its interest a. 11.80 b. 8.85 c. 13.10 d. 12.15 e. 14.75
Type your answer in the box. If the company's times interest earned ratio is 8 times and interest is $60,000, the company's earnings before interest and taxes is equal to (enter a whole number and include the dollar sign and commas, as appropriate).
Most questions answered within 3 hours.
-
Given f(x,y) = [x*sqrt(y)] / 3224 , 0<x<y<5.76 (f(x,y)=
0 otherwise)
Find P(x + y >...
asked 1 hour ago -
Mathematical reasoning
asked 30 minutes ago -
Mathematical reasoning
asked 33 minutes ago -
the following python code edits BMP image file to negative but I
need help with modifying...
asked 1 hour ago -
Answer True or False:
1. Classification criteria for economic system include
decision-making systems, mechanisms for information...
asked 1 hour ago -
THIS IS THE QUESTION FROM THE SUBJECT ELECTROMAGNETICS
AND YOU HAVE TO TAKE VALUE OF YOUR...
asked 59 minutes ago -
Create a Mattress class should have fields for size (king,
queen, twin), manufacturer, and price, and...
asked 1 hour ago -
What are the five dominant listening styles and give examples of
how you might notice each...
asked 1 hour ago -
choose a source of radiation and discuss each of the
following
a. Is the radiation ionizing...
asked 1 hour ago -
1.How does the description of electrons from General Chemistry
compare to that presented here?
2.What is...
asked 1 hour ago -
A spring with spring constant 110 N/m and unstretched length 0.4
m has one end anchored...
asked 1 hour ago -
A wheel has a radius of 4.68 m. How far (path length)
does a point on...
asked 1 hour ago