The following information is from the financial records of Newton Company for Year 2:
Required:Calculate the number of times interest is earned for Newton in Year 2. Round your answer to one decimal place.
What will be an ideal response?
Number of times interest is earned = Earnings before interest and taxes ÷ interest expense
Earnings before interest and taxes = $104,000 + $46,000 + $26,000 = $176,000
Number of times interest is earned = $176,000 ÷ $26,000 = 6.8 times
You might also like to view...
Your textbook identifies two communication roles that are very important in networks, like collaborations. The two roles are __________ and ____________.
a. Talker and Listener b. Boundary spanner and Inter-locker c. Intra-locker and Inter-locker d. Boundary spanner and Bridge builder
In the EPQ model, the total annual setup costs are given by ______.
a. (Annual demand / EPQ) * Setup cost b. (Annual demand * EPQ) * Setup cost c. (Annual demand * EPQ) / Setup cost d. (Annual demand / EPQ) / Setup cost
An expense account is normally closed by debiting Income Summary and crediting the expense account.
Answer the following statement true (T) or false (F)
The TMAP procedure includes each of the following steps except
A) define the project goals. B) list the knowns, unknowns, and constraints. C) sequence and link all team comments, responses and questions. D) conduct a feasibility study.