Bright view Inc. reported the following for the year: Net income: $180,000 Interest expense: $40,000 Income tax expense: $25,000 What is Bright view Inc.'s time interest earned ratio? a) 5.00 b) 6.13 c) 4.00 d) 6.25

Bright view Inc. reported the following for the year: Net income: $180,000 Interest expense: $40,000 Income tax expense: $25,000 What is Bright view Inc.'s time interest earned ratio? a) 5.00 b) 6.13 c) 4.00 d) 6.25

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

See similar textbooks

Related questions

Q: Solve with explanation and accounting question

A: To determine the prepaid insurance balance at the end of the third year, follow these steps:Find the…

Q: Please help me solve this financial accounting problem with the correct financial process.

A: Step 1: Define Dividends DeclaredDividends declared represent the portion of net income distributed…

Q: Please correct solution...

A: In accounting, assets are resources owned by a company which have future economic value that can be…

Q: What percentage will operating cash flow change?

A: To calculate the percentage change in operating cash flows, we use the Degree of Operating Leverage…

Q: Hi expert please help me this question

A: Step 1: Definition of Gross Profit (Long Form)Gross profit is a key financial metric that measures…

Q: Can you help me solve this general accounting problem with the correct methodology?

A: Summit Retail sets its price equal to cost plus 75% of the cost.Let the cost of the item be C.The…

Q: None

A: Debt-Equity Ratio = Total Debt/Total Equity0.75 = 12,000/Total EquityTotal Equity = 12,000/0.75Total…

Q: Provide correct answer

A: PLEASE LEAVE A HELPFUL RATING. THANKS!

Q: Raptors Inc. creates aluminum alloy parts for commercial aircraft. In a recent transaction Raptors…

A: Step 1:Determine the Lease Payment AmountTo calculate the annual lease payment, the formula used is…

Q: Provide answer

A: Provided Data:Purchases = $840,000Purchase Returns = $28,000Beginning Inventory = $112,000Cost of…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: To calculate the cost of goods sold (COGS) for the month of June, we use the following formula:COGS…

Q: Direct materials:62, Direct labor:54

A: Explanation of Direct Materials:Direct materials are the raw materials that become an integral part…

Q: ans plz

A: Step 1: Definition of Total Overhead CostsTotal overhead costs are the combined costs of all…

Q: Financial Accounting Question

A: Step 1: Define Return on Assets (ROA)Return on Assets (ROA) is a financial metric that measures the…

Q: Estimate the variable cost per meal and the total fixed cost using the high-low method

A: Step 1: Definition of High-Low MethodThe High-Low Method is a cost estimation technique used to…

Q: Hello teacher provide answer with calculation

A: Step 1: Definition of Gain or Loss on Sale of AssetA gain or loss on the sale of an asset occurs…

Q: Accounting answer please

A: Step 1: Definition of Labor Rate VarianceLabor rate variance is a key metric in managerial…

Q: What is the gross profit? Accounting

A: Step 1: Definition of Gross ProfitGross profit is the amount a company earns from its core business…

Q: none

A: Step 1: Definition of Work in Process Inventory CostWork in Process Inventory refers to the costs…

Q: ?!

A: Concept of Overhead Absorption Rate:The overhead absorption rate is a predetermined rate used to…

Q: You answered my 3 questions but i will not give unhelpful but if you will give anymore deslikes in…

A: Yo may also consider this explanation: General accounting is the backbone of financial management,…

Q: Financial Accounting

A: Step 1: Define Book Value Book value refers to the net carrying amount of an asset on the balance…

Q: I am trying to find the accurate solution to this general accounting problem with the correct…

A: Step 1: Definition of Net IncomeNet income is the profit of a company after all expenses, including…

Q: The degree of the operating leverage is

A: To determine the degree of operating leverage (DOL), we use the formula:DOL = Contribution Margin /…

Q: LindaServices had an accounts receivable balance of $88,200 on October 1. During October, the…

A: The amount billed to customers on account during October can be calculated using the following…

Q: Cher Industries has total material costs of $56,200, and total conversion costs are $74,600. The…

A: Definition of Unit Cost (Materials):Unit cost for materials refers to the average cost of materials…

Q: Please provide the solution to this general accounting question with accurate financial…

A: To calculate the book value of the machinery on December 31, 2021, using the straight-line method of…

Q: I need help finding the correct solution to this financial accounting problem with valid methods.

A: Step 1: Define Net Realizable Value Net realizable value of accounts receivable is the estimated…

Q: Watson Industries has a predetermined overhead rate of 65% of direct labor cost. During the month,…

A: To determine the amount debited to the Work in Process (WIP) Inventory, follow these steps:Calculate…

Q: What is the maturity value of the note? Accounting question

A: Step 1: Definition of Maturity ValueThe maturity value of a note is the total amount that must be…

Q: Provide answer

A: Explanation of Flexible Budget: A flexible budget is a financial planning tool that automatically…

Q: Need help in this accounting qu

A: Solution:We know the total direct materials cost variance is $18,000 unfavorable. The direct…

Q: Summarize the financial components included in the current assets and liabilities section of the…

A: Approach to solving the question:Based on the balance sheet for "Batter Up" as of December 31, 20XX,…

Q: On January 1, Crestview Finance lends a corporate client $195,000 at an annual interest rate of…

A: To calculate the interest revenue for the quarter ending March 31, we use the formula:Interest…

Q: General accounting question

A: Step 1: Definition of Gross ProfitGross profit is calculated as the difference between Sales and…

Q: I need help solving this Fanincial accounting question with the proper methodology.

A: We need to determine the fixed overhead costs of making the component.Step 1: Identify Total Cost of…

Q: Hello expert

A: The total interest expense can be calculated using the formula:Total Interest Expense = Principal ×…

Q: Can you help me solve this general accounting problem using the correct accounting process?

A: Step 1: Definition of Total Interest ExpenseTotal interest expense is the total amount of interest…

Q: Calculate the net sales revenue

A: Step 1: Definition of Net Sales RevenueNet Sales Revenue refers to a company's total sales minus…

Q: I am looking for the correct answer to this general accounting problem using valid accounting…

A: Step 1: Definition of Predetermined Overhead RateThe Predetermined Overhead Rate is calculated at…

Q: Need true answer.

A: Final Answer:Actual cost of direct materials used = $378,000Calculation:Standard Cost of Direct…

Q: I need guidance with this general accounting problem using the right accounting principles.

A: Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) measures the time…

Q: A retail store has three departments, S, T, and U, and does general advertising that benefits all…

A: Step 1: Definition of Service Cost (Specifically for Advertising Allocation)Service Cost refers to…

Q: Please give me answer with accounting question

A: Step 1: Definition of Interest ExpenseInterest Expense is the cost a borrower pays for using…

Q: Can you guide me through solving this financial accounting problem using proper techniques?

A: Step 1: Define Cash PaymentA cash payment refers to the transfer of money from a payer (individual…

Q: Provide answer

A: Explanation of Contribution Margin:Contribution margin is the difference between the selling price…

Q: Please provide the solution to this general accounting question using proper accounting principles.

A: Step 1: Definition of Gross ProfitGross profit is the difference between sales revenue and the cost…

Q: Opereting leverage?

A: The Degree of Operating Leverage (DOL) is a measure of how sensitive a company's operating income…

Q: No Ai Answer

A: Let's walk through each step slowly and give the logic behind it.Step 1: Understanding the ProblemWe…

Q: General accounting

A: Step 1: Definition of Return on Investment (ROI)Return on Investment (ROI) is a financial metric…

Question

Could you explain the steps for solving this financial accounting question accurately?

Bright view Inc. reported the following for the year:
Net income: $180,000
Interest expense: $40,000
Income tax expense: $25,000
What is Bright view Inc.'s time interest earned ratio?
a) 5.00
b) 6.13
c) 4.00
d) 6.25

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Sprout Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $510,000 $480,000 Income before income tax expense 5,610,000 6,720,000 a. Determine the times interest earned ratio for the current year and the prior year. Current year Prior Year b. Is the times interest earned ratio improving or declining?
In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax expense of $20,000. What was Hill Corporation's times interest earned ratio for the year? Select one: О а. 4.0 O a. ОБ. 3.5 Ob. 3.0 d. 5.0
. Great Products, Inc. reported the following on the company’s income statement in two recent years:Current Year Prior YearInterest Expense $270,000 $250,000Income before income tax expense 4,212,000 3,450,000a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the times interest earned ratio improving or declining?
A company's income before interest expense and income taxes is $425,000, and its interest expense is $115,000. Its times interest earned ratio is: Multiple Choice 7.40 0.27 343 2.43 3.70
Please Solve Question
.
Given answer Accounting
From the following information for BlueInks Corporation, compute the rate of return on assets. Hint: The numerator is income before interest expense and taxes. Net income $40,878 Total assets at beginning of year $250,100 Total assets at end of year $158,680 a. 15% b. 25% c. 16% d. 20%
National Company's net income last year was P65,000 and its interest expense was P15,000. Total assets at the beginning of the year were P630,000 and total assets at the end of the year were P650,000. The company's income tax rate was 25%. The company's return on total assets (based on adjusted net income) for the year was closest to?
Loomis, Inc. reported the following on the company’s income statement in two recent years: Please see the image for details: a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place.b. Is this ratio improving or declining?
Hedepeth fne net income for the most recent year was S15,185, The tax rate was 34 percent The mm paid $3,806 in total interest expense and deducted $2,485 in depreciation expense. a) What is the company's Earnings Before Taxes (EBT) b) What is the company's Earnings Before Interest and Taxes (EBIT) c) What is the company's Earnings Before Interest, Taxes, and Depreciation (EBITD) d) What was the cash coverage ratio for the year and how do you interpret your answer?