Solution:
Cash coverage ratio = ( EBIT +Depreciation expense) / Interest expense
EBIT = $3276.92
Interest expense =$300
Depreciation expense =$200
Cash coverage ratio = (3276.92+200)/300= 11.59
Cash Coverage Ratio Earnings Before Interest and Taxes (EBIT) is $3,276.92, interest expense is $300, and...
Earnings before interest and taxes is $74,300. Interest is $8,162 and depreciation is $8,300. The tax rate is 34%. What is the cash coverage ratio? 08.52 08.95 09.52 09.95 0 10.12
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $48,000 for the current period. Assuming a flat ordinary tax rate of 30%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,500 in interest. b. The firm pays $12,500 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...
Cost of goods sold Depreciation expense Earnings after taxes Earnings before taxes Earnings before taxes Interest expense Sales Selling and administrative expense Taxes value: 20.00 points Lemon Auto Wholesalers had sales of $740,000 last year, and cost of goods sold represented 70 percent of sales. Selling and administrative expenses were 12 percent of sales. Depreciation expense was $18,000 and interest expense for the year was $11,000. The firm's tax rate is 30 percent. a. Compute earnings after taxes. Lemon Auto...
Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $41,000 for the current period. Assuming a flat ordinary tax rate of 29%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $11,800 in interest. b. The firm pays $11,800 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...
Earnings before interest, taxes, depreciation and amortization is lower than EBIT as long as the company has depreciation or amortization expenses. True or False
The WorkHardNowEnjoyLater Company had Earnings before Interest and taxes (EBIT or "operating profit") of $300,000 and net income of $200,000. If the tax rate is 21%, what was the interest expense for the year? Hint: Work upwards from net income, the "bottom line" of the income statement. Begin by writing out the bottom part of an income statement and fill in what is given. Show all work for full credit. MUST SHOW ALL WORK
How to get an interest coverage ratio of: -48.90
with the formula of: Earnings Before Interest & Taxes
/ Interest Expense
How to get a gross margin ratio of: -39.20%
With the formula of: Gross Profit/ Sales
please zoom if needed to be.. attached is the statements with
the answers for coverage ratio and gross margin but please show the
formula used to get those answers. Thanks in advance.
Income Statement 9322.9 9060.5 262.4 $12615.2 822.7 11522.9 2472.1 2202.4 $1371.2 560.7...
Sunrise, Inc., has no debt outstanding and a total market value of $320,000. Earnings before interest and taxes, EBIT, are projected to be $47,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 19 percent higher. If there is a recession, then EBIT will be 30 percent lower. The company is considering a $165,000 debt issue with an interest rate of 6 percent. The proceeds will be used to repurchase shares of...
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 Phillipe Corporation has sales of $4,053, a depreciation expense of $550, EBIT of $723, and an interest expense of $302. What is the common size value for earnings before taxes?