When can an escrow agent transfer title and deliver funds?
A)?Upon lender's direction
B)?Upon seller's direction
C)?When all contingencies are met
D)?None of the above
C
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On October 31, 2018, Sterling Construction Company entered into a credit agreement with Comerica Bank. The following appeared among the agreement's financial covenants: "Commencing with the fiscal quarter ending December 31, 2018, maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00." The credit agreement also contained a "definitions" section where this item was listed: " 'Fixed Charge Coverage Ratio' shall mean as of any date of determination a ratio the numerator of which is EBITDA for the Applicable Measuring Period, minus cash taxes and cash tax distributions with respect to such period and the denominator of which is the sum of Current Maturities of Long Term Debt plus interest paid during the trailing twelve month period, plus
twenty-five percent (25%) of the daily average total non-amortizing debt during the trailing twelve month period."Required:a. What is a minimum fixed charge coverage ratio and what purpose does it serve in the company's loan agreements?b. Why is it necessary for the loan agreement to precisely define "Fixed Charge Coverage Ratio?" What will be an ideal response?
Which of the following is an example of a proactive change?
A. Ciara's staff is unhappy about the long hours they have been working and several of them quit before she knows there is a problem. B. Ciara's group sends a product that is nearing its launch date back to the drawing board based on a competitor's superior new offering. C. Ciara cannot get permission to hire another person until her group misses several deadlines. D. Ciara is constantly "putting out fires," responding to daily crises in her group. E. Ciara explores improvements in bonus structures with her staff and begins to implement them despite the fact that her employees are generally content.
During Year 5, Taylor Corporation signed a long-term lease for a building. It classified the lease as a capital lease and recorded it in the accounts as follows: Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 Capitalized Lease Obligation . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 The transaction requires
a. inclusion in the statement of cash flows as an operating activity, only. b. inclusion in the statement of cash flows as an investing activity, only. c. inclusion in the statement of cash flows as a financing activity, only. d. disclosure in a supplementary schedule or notes to the financial statements. e. disclosure in managements' discussion and analysis.
What are the two different kinds of resources that organizations have?
a. Intangible and tangible b. Natural and unnatural c. Reliable and unreliable d. Financial and technical