Problem 9-5A (Algo) Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales Variable expenses (80%) $1,150,000 920,000 Income before interest Interest expense (fixed) Net income 230,000 60,000 $ 170;000 Weaver Company Income before interest Sales Variable expenses (60%) Interest expense (fixed) Net income $ 1,150,000 690,000 460,000 290,000 $170,000 Problem 9-5A (Algo) Part 5 5. What happens to each company's net income if sales decrease by 40%? Note: Round your answers to nearest whole percent. Company Net income Miller Company Decreases by % Weaver Company Decreases by

Problem 9-5A (Algo) Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales Variable expenses (80%) $1,150,000 920,000 Income before interest Interest expense (fixed) Net income 230,000 60,000 $ 170;000 Weaver Company Income before interest Sales Variable expenses (60%) Interest expense (fixed) Net income $ 1,150,000 690,000 460,000 290,000 $170,000 Problem 9-5A (Algo) Part 5 5. What happens to each company's net income if sales decrease by 40%? Note: Round your answers to nearest whole percent. Company Net income Miller Company Decreases by % Weaver Company Decreases by

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Provide Answer with calculation and explanation
Answer in subparts: A. 0.57895 or 11:19 B. 0.90476 or 19:21 C. 0.3258 Note: Please answer d, e and f only.
View Policies Current Attempt in Progress A company has the following balances: Sales revenue $312.000: Sales Returns and Allowances $2.000: Sales Discounts $4,000: Cost of Goods Sold $184,000: Operating Expenses $84,000. Assume there are no other revenues, other expenses, or income tax expense. How much is the profit margin? O 16.0% O 12.2% O 12.4% O 41.0 % eTextbook and Media Hint 4 ! Save for Later Using multiple attempts will impact your score 10% soore reduction after attempt 1 Attempts; unlimited Submit Answer
Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $940,300 $810,600 $681,200 $582,200 $493,400 Interest expense 319,700 291,800 252,000 192,100 153,000 Income tax expense 300,896 226,968 190,736 151,372 118,416 Average total assets 5,779,817 5,103,704 4,360,748 3,704,785 3,153,171 Average stockholders' equity 1,975,420 1,769,869 1,548,182 1,373,113 1,203,415 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: Industry Ratios Return on total assets 21.5 % Return on stockholders’ equity 44.4 % Times interest earned 4.6 Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: Year 5…
1
Question Content Area Hsu Company reported the following on its income statement: Income before income taxes $325,364 Income tax expense 97,609 Net income $227,755 Interest expense was $73,540. Hsu Company's times interest earned ratio (rounded to two decimal places) is a.4.42 times b.3.1 times c.2.1 times d.5.42 times
Sales Cost of goods sold Gross profit Fixed charges (other than interest) Income before interest and taxes Interest Income before taxes Taxes (35%) Income after taxes. LANCASTER CORPORATION a. What is the times-interest-earned ratio? Note: Round your answer to 2 decimal places. Times interest earned Fixed charge coverage times b. What would be the fixed-charge-coverage ratio? Note: Round your answer to 2 decimal places. times $ 259,000 209,000 $ 50,000 24,500 $ 25,500 19,000 $ 6,500 2,275 $ 4,225
klp.2
QUESTION 6 A service-based company reports gross revenue of $125,000; sales discounts of $4,500; allowance for doubtful accounts of $6,000; operating expenses of $89,600; and a loss on sale of PP&E of $2,000. What is the company's net income after taxes assuming a tax rate of 20%?
Required information Problem 9-5A (Static) Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $ 1,000,000 800,000 Variable expenses (80%) Income before interest 200,000 Interest expense (fixed) 60,000 Net income $ 140,000 Sales $ 1,000,000 Variable expenses (60%) Income before interest Interest expense (fixed) Net income 600,000 400,000 260,000 $ 140,000 Problem 9-5A (Static) Part 6 6. Which company would have a greater ability to pay interest expense if sales were to decrease? O Miller Company O Weaver Company Weaver Company
Only typed answer and give answer fast