28 A company's income statement reveals the following amounts related to the company's operations for the most recent year: • Net sales revenue: $5,000,000 • Interest expense: $60,000 • Income tax expense: $80,000 • Net income: $400,000 What was the company's times-interest-earned ratio for the year? 4.33 O 6.75 O 7.67 9.00 NEXT. BOOKMARK

28 A company's income statement reveals the following amounts related to the company's operations for the most recent year: • Net sales revenue: $5,000,000 • Interest expense: $60,000 • Income tax expense: $80,000 • Net income: $400,000 What was the company's times-interest-earned ratio for the year? 4.33 O 6.75 O 7.67 9.00 NEXT. BOOKMARK

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $2,320,000 100 % Cost of merchandise sold 1,624,000 73 Gross profit $696,000 27 % Selling expenses $394,400 15 % Administrative expenses 162,400 Total operating expenses $556,800 21 % Income from operations $139,200 6 % Other revenue and expense: Other revenue 46,400 2 Other expense (23,200) Income before income tax expense $162,400 7 % Income tax expense 69,600 Net income $92,800 3 %
Assume the following sales data for a company: Line Item Description Amount Current year $891,303 Preceding year 515,759 What is the percentage increase in sales from the preceding year to the current year?
Benson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is: Select one: A. 117.30% B. 86.36% C. 120.92% D. 130.29%
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Following information are taken from financial statements of a company. What is the interest coverage ratio? Sales Revenue $1,000,000 Tax Rate 20% Net Income $200,000 Operating Income $280,000
X-1 Corp's total assets at the end of last year were $395,000 and its EBIT was $52,500. What was its basic earning power (BEP) ratio? a. 11.30% b. 16.35% c. 13.29% d. 11.70% e. 15.55%
A company reports the following:Income before income tax $4,000,000Interest expense 400,000Determine the times interest earned ratio. Round to one decimal place.
Vertical Analysis of Income Statement Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $527,000 $448,000 Cost of merchandise sold 279,310 215,040 Selling expenses 100,130 94,080 Administrative expenses 105,400 85,120 Income tax expense 15,810 22,400 Question Content Area a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Innovation Quarter Inc.Comparative Income StatementFor the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $527,000 fill in the blank 08e5edf2efb0fbc_1% $448,000 fill in the blank 08e5edf2efb0fbc_2% Cost of merchandise sold 279,310 fill in the blank 08e5edf2efb0fbc_3% 215,040 fill in the blank 08e5edf2efb0fbc_4%…
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Citrine Company reported the following on its income statement: Income before income taxes $500,000 Income tax expense 100,000 Net income $400,000 An analysis of the income statement revealed that interest expense was $50,000. Citrine Company's times-interest-earned ratio was: a. 18. b. 5. c. 9. d. 11.
Common-Size Income StatementsConsider the following income statement data from the Ross Company: Current Year Previous Year Sales revenue $529,000 $454,000 Cost of goods sold 336,000 279,000 Selling expenses 109,000 103,000 Administrative expenses 64,000 58,000 Income tax expense 7,800 5,400 Prepare common-size income statements for each year. Note: Round answers to one decimal place (ex: 0.2345 = 23.5%). Note: Compute percentages for each "Total" (do not add prior percentage amounts to arrive at Totals). ROSS COMPANYCommon-Size Income Statements(Percent of Sales Revenue) Current Year Previous Year Sales Revenue Answer Answer Cost of Goods Sold Answer Answer Answer Answer Answer Answer Selling Expenses Answer Answer Administrative Expenses Answer Answer Total Answer Answer Income before Income Taxes Answer Answer Answer Answer Answer Answer Answer Answer PreviousSave AnswersNext
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