IN A RECENT YEAR, DEREK CORPORATION HAD A NET INCOME OF $150,000, AN INTEREST EXPENSE OF $30,000, AND AN INCOME TAX EXPENSE OF $20,000. WHAT WAS DEREK CORPORATION'S TIME'S INTEREST EARNED RATIO FOR THE YEAR? A) 5.00. B) 4.00. C) 6.67. D) 7.50.

IN A RECENT YEAR, DEREK CORPORATION HAD A NET INCOME OF $150,000, AN INTEREST EXPENSE OF $30,000, AND AN INCOME TAX EXPENSE OF $20,000. WHAT WAS DEREK CORPORATION'S TIME'S INTEREST EARNED RATIO FOR THE YEAR? A) 5.00. B) 4.00. C) 6.67. D) 7.50.

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: Question 2.7 Given the following data: Annual Sales: $5,000,000 Fixed Assets: $750,000 Total Assets:…

A: Explanation of Annual Sales:Annual sales refer to the total revenue generated by a company from…

Q: Financial accounting

A: Step 1: Define Earnings Per ShareEarnings per share are the per-share amount of earnings available…

Q: I need this accounting question

A: Step 1: Define Variable CostingThe variable costing income statement is prepared only for internal…

Q: Rhett company has two departments. Financial accounting

A: Step 1: Define Overhead RateThe overhead rate is always determined at the beginning or before…

Q: Company's Balance Sheet

A: Explanation of Bank Reconciliation: Bank reconciliation is a process of comparing and adjusting a…

Q: None

Q: Wainwright Corporation had the following activities in 2025. 1. Sale of land $180,000. 4. Purchase…

A: Investing activities in a cash flow statement typically include transactions involving long-term…

Q: Please provide correct answer accounting question

A: Step 1: Define Accounts Receivable Collection PeriodThe accounts receivable collection period is a…

Q: a PDF PDF PDF PDF PDF PDF D2L D2L D2L GI D2L D2L D2L…

A: Detailed explanation:When the maturity is expressed in days, the exact number of days must be…

Q: What is Sarasota's return on assets for 2017 on these general accounting question?

A: Step 1: Define Return on AssetsThe return on assets is one of the profitability and efficiency ratio…

Q: Please given correct answer Accounting question

A: Step 1: The cost of ending work in process can be calculated by multiplying the equivalent units of…

Q: what was the income using variable costing. Sub - Account

A: Key Information:Income under absorption costing = $60,000Beginning Inventory = 13,000 unitsEnding…

Q: Please solve this general accounting question

A: Step 1: Define Manufacturing OverheadManufacturing overhead is applied to the total units that have…

Q: If you give me correct answer I will give you helpful rate on this general accounting question

A: Step 1: Define Accounts Receivable TurnoverIn the domain of accounting, the accounts receivable…

Q: Question: Account On the basis of the following data, determine the value of the inventory at the…

A: Step 1: Introduction to inventory valuationInventory valuation is referred to as that method which…

Q: Subject. general account

A: Step-by-step Process:Compare cost and market value for each category (small, medium, and…

Q: What are budgeted sales for December?

A: Step 1: Find the cost of goods sold for December.= expected beginning inventory + budgeted purchases…

Q: Please provide correct answer financial accounting

A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate of the assembly department…

Q: Can you please solve this accounting question?

A: Step 1: Define Cost Allocation BaseManagement reports require costs of the service department to be…

Q: Use the following information for the year ended december 31,2015, to solve this question general…

A: Step 1: Define Total AssetA person or entity's total assets are all of their possessions combined.…

Q: Need help with this question solution general accounting

A: Step 1: Define Asset DisposalAsset disposal requires recording the profit or loss on an asset's sale…

Q: H.T. Tan Company is preparing the annual financial statements dated December 31 of the current year.…

A: Understand the LCNRV RuleThe LCNRV rule ensures that inventory is reported at the lower value…

Q: A partial listing of costs solution this question accounting

A: Step 1: Define Manufacturing OverheadManufacturing overhead includes all the indirect costs related…

Q: Provide answer

A: Explanation of Reciprocal Accounting:Reciprocal accounting refers to the simultaneous recording of…

Q: Accounting: GIVE DAILY REVENUE

A: Explanation of Crop Grades: Crop grades are quality classifications assigned to agricultural…

Q: Please correct the answers in red

A: Assumptions:The car wash will be open 52 weeks a year.60% of customers using the wash will also use…

Q: Answer required

A: Step 1:Predetermined overhead rate: Predetermined overhead rate = Estimated total Factory OH cost /…

Q: What are the common earnings per share for 2017 on these financial accounting question?

A: Step 1: Define Earnings Per ShareThe earnings per share show the net income of the company that can…

Q: A company had average total assets of $982,4250 and net income of $190,700 and reports various…

A: Step 1: Define Return on AssetsReturn on assets is a financial ratio which demonstrates…

Q: How much should sacks record

A: Hello student! Our accounting standard (IAS 16) requires us to recognize the asset acquired at its…

Q: Provide answer

A: Explanation of Composite Life Calculation: Composite life calculation is a method used to determine…

Q: Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns 50 percent of…

Q: Braverman Company's net income last year was $75,000 and it's interest expense was $10,000.

A: To calculate the Return on Total Assets (ROA), we need to use the formula:ROA=Average Total…

Q: Provide correct answer the general accounting question do fast

A: Step 1: Define Pre-determined OH RateThe manufacturing overhead rate is a formula that is used to…

Q: Question 13 of 42 View Policies Current Attempt in Progress Stansfield Corporation had the…

A: In the statement of cash flows, financing activities include transactions involving debt, equity,…

Q: General accounting

A: Explanation of Base Admission Price:The base admission price is the fixed cost charged per person…

Q: I want to correct answer general accounting

A: Step 1: Define Asset Turnover RatioThe turnover of all the firm's assets is measured by the asset…

Q: Please provide correct answer general accounting

A: Step 1: The amount of underapplied or overapplied manufacturing overhead is the difference between…

Q: Financial Accounting

A: Present Value = Future Value / (1 + Interest Rate)Given:Future Value = $75,000Interest Rate = 10% =…

Q: Hello tutor please provide answer financial accounting

A: Step 1: Define Long-lived AssetsIn accounting, the total assets of a firm can be categorized into…

Q: Suppose a stock had an intial price of $52 share, please solve this financial accounting question

A: Step 1: The percentage of total return can be calculated using the formula - Percentage total return…

Q: STRICT WARNING: AI ANSWER WILL BE REJECTED & REPORT

Q: Walker tv appliances reported the following provide answer accounting questions

A: Step 1: Define Gross Profit MarginGross profit represents the difference between the sales revenue…

Q: The following information is available for Oriole Corporation for 2017. 1. Depreciation reported on…

A: Step 1: Identify AdjustmentsTemporary Differences:Depreciation (Tax > Book): Depreciation for tax…

Q: Compute the number of units solving accounting question

A: Step 1: Define Manufacturing OverheadManufacturing overhead is classified into variable and fixed…

Q: Find units?

A: Explanation of Selling Price:The selling price refers to the amount a customer pays for a single…

Q: Step by step answer

A: Formula for Operating Cash Flow: Operating Cash Flow = Net Income + Non-Cash Expenses (Depreciation)…

Q: Please provide correct answer general accounting

A: Step 1: Define Note PayableNote payable is a liability. It is a written agreement in which one party…

Q: Please provide correct answer financial Accounting

A: Step 1: Define Common StockThe most popular kind of stock is common stock. It represents the shares…

Q: Solve this question with given option

A: Step 1: Define DepreciationDepreciation represents the fixed assets replacement provision. It is…

Question

100%

Please provide correct answer not use ai.general accounting

IN A RECENT YEAR, DEREK CORPORATION HAD A
NET INCOME OF $150,000, AN INTEREST EXPENSE
OF $30,000, AND AN INCOME TAX EXPENSE OF
$20,000. WHAT WAS DEREK CORPORATION'S TIME'S
INTEREST EARNED RATIO FOR THE YEAR?
A) 5.00.
B) 4.00.
C) 6.67.
D) 7.50.

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

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.
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
For the past year, shame ltd., had sales of $45,002, interest expense of $4,306, cost of goods sold of $18,349, selling and administrative expense of $12,146, and depreciation of $6,995. If the tax rate was 33 percent, what was the company's net income?
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
Merryweather Corporation reported net income of $150,000, income before taxes of$240,000 and interest expense of $32,000. What is the times-interest-earned ratio? (Roundyour final answer to two decimal places.)a. 4.69b. 5.69c. 7.50d. 8.50
Merryweather Corporation reported net income of $150,000, income before taxes of$240,000 and interest expense of $32,000. What is the times-interest-earned ratio? (Roundyour final answer to two decimal places.)a. 4.69b. 5.69c. 7.50d. 8.50
A company's interest expense is $8,000. Its income before interest expense and income taxes is $32,000. Its net income is $9,600. The company's times interest earned ratio equals: Select one: Oa. 0.25. O b. 0.30. O c. 0.83. O d. 3.33. O e. 4.0.
C Company had the following data for the last year (dollars in thousands): Net income = $700; EBIT = $1,200; Total assets = $3,500; and Total operating capital = $2,100. Information for the current year is as follows: Net income = $800; EBIT = $1,555; Total assets = $3,800; and Total operating capital = $2,500. The company's federal and state tax rate is 35%. How much free cash flow did the firm generate during the current year? Round your answer to the nearest dollar. (Hint: FCF = NOPAT - Net Investment in Operating Capital) Group of answer choices: $605 $617 $611 $608 $614
What is the return on assets ratio?
Given answer Accounting
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%
s