A company had interest expense of $5,000, income before interest expense and income taxes of $17,000, and net income of $9,400. The company's times interest earned ratio equals:
A. 0.5.
B. 1.8.
C. 3.4.
D. 0.3.
E. 1.9.
Answer: C
You might also like to view...
The primary focus of a management information system is management of costs
Indicate whether the statement is true or false
On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the journal entry to record the first annual payment?
A. Debit Interest Expense $20,000; credit Cash $20,000. B. Debit Interest Expense $37,258; credit Cash $37,258. C. Debit Interest Expense $20,000; debit Notes Payable $17,258; credit Cash $37,258. D. Debit Interest Expense $20,000; debit Interest Payable $17,258; credit Cash $37,258. E. Debit Cash $250,000; debit Interest Expense $37,258; credit Notes Payable $287,258.
Making sure that the benefits a customer receives from a marketing mix exceed the customer's costs of obtaining those benefits is one way to gain a competitive advantage.
Answer the following statement true (T) or false (F)
Given a 25% chance of a 600,000 bushel yield and a 75% chance of a 500,000 bushel yield, what quantity should the farmer hedge in order to protect against an uncertain harvest? Assume the farmer is willing to take reasonable risk
A) 0 B) 500,000 C) 525,000 D) 600,000