In a recent year, Brightstar Industries had a net income of $240,000, an interest expense of $45,000, and an income tax expense of $35,000. What was Brightstar Industries' times interest earned ratio for the year? a) 7.11 b) 5.33 c) 8.25 d) 6.50

In a recent year, Brightstar Industries had a net income of $240,000, an interest expense of $45,000, and an income tax expense of $35,000. What was Brightstar Industries' times interest earned ratio for the year? a) 7.11 b) 5.33 c) 8.25 d) 6.50

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

See similar textbooks

Related questions

Q: Hi expert please give me answer general accounting

A: Step 1: Define Book ValueBook value is the recorded value of an asset in the company's accounting…

Q: Financial accounting

A: Step 1: Define Total CostTotal cost indicates the entire costs incurred during the process of…

Q: I want to correct answer general accounting

A: The applied manufacturing overhead is computed by multiplying the predetermined overhead rate by the…

Q: How much?

A: Explanation of Sales Revenue:Sales revenue represents the total amount of money a company earns from…

Q: Hi expert please give me answer accounting questions

A: Step 1: Define Stockholders' EquityStockholders' equity represents the owners' claim on the assets…

Q: What is the bond carrying amount on these general accounting question?

A: Step 1: Define Bond Carrying AmountThe bond carrying amount represents the net liability related to…

Q: Financial Accounting Question please find the correct answer

A: Step 1: Introduction to time value of moneyTime value of money is a financial concept which is used…

Q: Hii tutor please given answer not use ai..

A: Step 1: Define Variable CostingVariable Costing only accounts for variable production cost as a…

Q: Subject: General Account A company had the following ending inventory costs: Product Units of Hand…

A: Step 1: Compare Cost and Market ValueFor each product, compare the unit cost with the market value…

Q: Provide correct answer the accounting question without use Ai and chatgpt

A: Step 1: Define Taxable Social Security BenefitsThe taxable amount of Social Security benefits…

Q: Posting in cost account subject

A: Step 1: Key DataSelling Price: $53 per unit.Variable Costs per Unit:Direct Materials: $30Direct…

Q: Financial Accounting

A: Step 1:Dividend yield shows the relationship between dividend per share and the current price per…

Q: Presented below is information related to Blossom Retail Stores, Inc. pension plan for 2026: Service…

A: Part (a): Compute the Unexpected Gain or Loss for 2026 The unexpected gain or loss is based on the…

Q: Financial Accounting

A: Step 1: Define Yield To CallThe yield to call(YTC) of a bond differs from its yield to…

Q: Get correct answer accounting questions

A: Step 1: Define Average Collection PeriodAccounts receivable represent the credit sales made to the…

Q: Given answer accounting questions

A: The $5,100 rebate is not used to lower the sticker price because the problem stated 0% APR financing…

Q: Hello solve and give true answer

A: To determine whether Ridley Company should retain or replace the old machine, we need to analyze the…

Q: Hi expert please give me answer general accounting

A: Step 1: Define Methods Of DepreciationIFRS and GAAP allow mainly 4 types of methods that can be used…

Q: Financial Accounting

A: Explanation of Absorption Costing: Absorption costing is a method of product costing that includes…

Q: Please provide correct answer financial accounting

A: Step 1: Define Net IncomeNet income is the most important indicator of a business's performance as…

Q: Cost Account. compute revenue and variable expenses for each show.

A: Step 1: Revenue per ShowRevenue is calculated as the number of tickets sold multiplied by the ticket…

Q: Oswego Clay Pipe Company sold $45,300 of pipe to Southeast Water District 45 on April 12 of the…

A: The terms of the transaction are 2/15, n/60. This means that the buyer, Southeast Water District 45,…

Q: I won't this general accounting question please solve it..

A: Step 1: Computation 1 By using the future value formula, we can substitute the amounts and find the…

Q: What is the total amount will appear on the balance sheet?

A: Step 1:Property, Plant, and Equipment are the long-term tangible assets that are being used for…

Q: Financial Accounting Question please answer

A: Step 1: Define Discount BondA zero-coupon or discount bond doesn't offer interest payments on the…

Q: Hi expert please give me answer general accounting

A: Step 1: Definition of Rate of Return on Investment (ROI)The Rate of Return on Investment (ROI)…

Q: Solve this accounting questions

A: Step 1: Define Net IncomeCompanies assess the net income of their projects to check the actual…

Q: Get correct answer accounting questions

A: Step 1: Define Operating LeverageOperating Leverage is the degree where a company can increase its…

Q: Subject:- General Account Lynch Company manufactures and sells a single product. The following costs…

A: Step 1: Compute Total Variable CostsVariable Costs Per UnitDirect materials: $10Direct labor:…

Q: Tag. General Account

A: Step 1: Total variable costs per unit Variable costs per unit will remain unchanged within the…

Q: Give me right solutions

A: Q1. When should cross-dimensional analysis replace single-focus review?Cross-dimensional analysis is…

Q: A manufacturing company that produces a single product has provided the following data concerning…

A: To determine the total period cost under variable costing, we need to include all fixed costs and…

Q: The relevant range??

A: Step 1: Key InformationVolume at 700,000 units:Total variable costs: $17,500,000Total fixed costs:…

Q: A company's normal selling price for its product is $30 per unit. However, due to market…

A: As per given:Cost = 26 per unitNRV = 23 per unitCompare the cost and net realizable value (NRV) and…

Q: Solve this problems and fill blank space

A: Step 1: Calculate Book Depreciation The machine's cost is $3,000,000 with an estimated life of 5…

Q: gij

A: In this particular case, one of the most famous financial criteria is the Net Present Value (NPV),…

Q: SUBJECT = COST ACCOUNT Elgin Battery Manufacturers had sales of $870,000 in 2009 and their cost of…

A: Step 1: Determine Gross ProfitThe cost of goods sold (COGS) is 63% of sales, so the gross profit is…

Q: Cost Account subject questions

A: Step 1: Key InformationUnits produced in Year 2: 2,750Units sold in Year 2: 3,200Variable production…

Q: Which basis applies to accounting for dividend-in-kind distributions?

A: Explanation of Dividend-in-Kind:A dividend-in-kind refers to a distribution made by a corporation to…

Q: Need solution for this account Q

A: To compute the production cost per unit under variable costing, we will include all variable costs…

Q: General Accounting Question

A: Step 1: Define AssetsIf you buy a lawnmower and begin a small business mowing lawns, your purchase…

Q: Gujri Place Clock Shop

A: Explanation of SalesSales refer to the total revenue earned by a business from the sale of goods or…

Q: I need this general accounting question

A: Step 1: Define Long Term Capital GainIf a capital asset is sold by an investor after holding it for…

Q: Please give me answer general accounting question

A: Step 1: Define InventoryInventory means the materials or goods a business keeps to sell, manufacture…

Q: Problem

A: Explanation of Debt-to-Equity Ratio: The debt-to-equity ratio is a key financial metric that…

Q: Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other…

A: Step 1: Key DataSales: $12,500Operating costs (excluding depreciation): $7,250Depreciation:…

Q: Solve these general accounting question

A: Step 1: Calculate Direct Materials per unitStep 2: Calculate Direct Labor per unitStep 3: Calculate…

Q: Accounting Problem

A: Step 1:To determine the compliance status of the Crystal Springs Water Treatment plant, let's…

Q: Financial accounting

A: Step 1: Introduction to time value of moneyTime value of money is a financial concept which is used…

Q: Need answer the general accounting question not use ai and chatgpt

A: Follow this formula of cost of goods sold.Cost of goods sold = Beginning inventory + Purchases -…

Question

Please solve these financial accounting question

In a recent year, Brightstar Industries had a net income of
$240,000, an interest expense of $45,000, and an income tax
expense of $35,000. What was Brightstar Industries' times
interest earned ratio for the year?
a) 7.11
b) 5.33
c) 8.25
d) 6.50

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

Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
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?
Kristyle Company's net income last year was P40,000 and its interest expense was P8,000. Total assets at the beginning of the year were P260,000 and total assets at the end of the year were P315,000. Kristyle Company's income tax rate was 35 percent. Kristyle's return on total assets for the year was closest to * Choices: 7.9%. 16.7%. 14.5%. 15.7%.
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?
Give me answer for this question
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?
.
. 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?
LMM Company’s total assets at the end of last year were P405,000 and its earnings before interest and taxes was P52,500. What was its basic earning power (BEP) ratio?
11
In a recent year Ley Corporation had net income of $150,000, interest expense of $30,000, and a times interest earned ratio of 7. What was Ley Corporation's income before taxes for the year?
Provide correct answer for this question