Odessa Co. has current assets of $6.38 million and net income of $10.4 million. Current liabilities total $2.9 million, interest expense is $2.4 million, and income tax expense is $3.4 million. What is the times interest earned ratio for this company? (Round your final answer to 2 decimal places.)
A. 6.75.
B. 2.20.
C. 0.33.
D. 0.45.
Answer: A
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A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage
Indicate whether the statement is true or false
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:Beginning inventory, January 1: $4,000Net sales: $80,000Net purchases: $78,000The company's gross margin ratio is 25%. Using the gross profit method, the cost of goods sold would be:
A. $60,000. B. $63,000. C. $19,500. D. $20,000. E. $58,500.
Errors in collecting data may be attributed to fieldworkers and respondents. What is important about these errors is that:
A) researchers keep a list of all the errors that occur and report them in the "Error Report" B) researchers know the sources of these errors and their history C) researchers know the source and history of these errors and maintain a catalog of them D) researchers know the source of the errors and implement controls to minimize them E) researchers do NOT know the source of these errors but must watch for them carefully
Accounts Receivable was $1,500 at the end of November and $1,050 at the end of December. Revenue totaled $8,400 for December. How much cash was received from revenues during December?
A) $10,950 B) $8,850 C) $7,950 D) $5,950