Ruby Corp's sales last year were $435,500, its operating costs were $350,000, and its interest charges were $10,000. What was the firm's times interest earned (TIE) ratio?

Q: Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets…

A: As per the DuPont analysis, the return on equity can be found by using following formula:

Q: Fab Corp had net income of $5.42/share last year, and it paid $2.04/share in dividends last year. A)…

A: The dividend payout ratio and retention ratio are two financial ratios that companies use to…

Q: Chutes & Co. has interest expense of $1.05 million and an operating margin of 11.9% on total sales…

A: Interest rate ratio (ICR) is a financial measure of a company's ability to meet interest payments on…

Q: (DuPont analysis) Bryley, Inc. earned a net profit margin of 4.5 percent last year and had an equity…

A: The return on equity can be calculated as per the Dupont equation:Return on Equity = Net profit…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 6. a. What…

A: We need to use below equations to solve above problems.ROA = Operating profit margin* Assets…

Q: (DuPont analysis) Triangular Chemicals has total assets of $104 million, a return on equity of 35…

A: DuPont analysis is an analysis which is a part of financial ratios. Financial ratios are based on…

Q: Aquilera, Inc., has sales of $18.8 million, total assets of $13.8 million, and total debt of $4.6…

A: Net income means the amount the company is earning its profits ie. Revenues – total costs.Also, Net…

Q: The interest coverage ratio is times.

A: Interest coverage ratio is a financial metric that helps in determining the ability of a business…

Q: MPI Incorporated has $6 billion in assets, and its tax rate is 25%. Its basic earning power (BEP)…

A: The times-interest-earned ratio (TIE) compares the EBIT of a company relative to the amount of…

Q: Last year, Crystal Rock Holdings reported $510,000 of sales, $262,500 of operating costs other than…

A: The times-interest-earned ratio is a financial ratio that represents the ability of a company to…

Q: The Diamond Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; Profit Margin = 0.10;…

A: AFN or Additional funds needed means the additional amount of money a company needs, to finance the…

Q: A firm has the following accounts; sales = $1,190,000, cost of goods sold = $876,000, depreciation…

A: Sales = s = $1,190,000Cost of Goods Sold = cogs = $876,000Depreciation = d = $130,000Addition to…

Q: MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: To calculate the Times Interest Earned (TIE) ratio for MPI Incorporated, we need to follow these…

Q: A firm has total interest charges of $10,000 per year, sates of $1 million, a tax rate of 40…

A: Times interest earned ratio or interest coverage ratio shows ability of the company in paying it's…

Q: Swank Clothiers earned $1,570 million last year and had a 25 percent payout ratio. How much did the…

A: First we need to calculate retention ratio: Retention ratio = 1-payout ratio Now Retention amount =…

Q: Lawn Care, Inc., has sales of $367,400, costs of $183,600, depreciation of $48,600, interest of…

A: Return on equity measures the return generated by common or equity shareholders from their…

Q: Orono Corp.'s sales last year were $465,000, its operating costs were $362,500, and its interest…

A:

Q: The Cookie Shoppe has sales of $637,500. The profit margin is 6.8 percent and the firm has a 50…

A: Retained earnings are the portion of a company's net income that is not paid out as dividends, but…

Q: Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating…

A: calculation of cost of goods sold = 62% of 14800000 = $ 9176000 calculation of sales and operating…

Q: (Using common-size financial statements) The S&H Construction Company expects to have total sales…

A: Step 1: Preparation of the pro forma income statement.Pro forma Income StatementSales…

Q: ROA ?

A: To calculate the firm's Return on Assets (ROA), we need to use the following formula:Given:Profit…

Q: ne company's total sales are million. (Round to one decimal

A: Dupont analysis refers to the framework established by the Dupont corporation for analyzing the…

Q: Orono Corp.'s sales last year were $435,000, its operating costs were $362,500, and its interest…

A: The times interest earned (TIE) or interest coverage ratio is a financial ratio that measures a…

Q: MPI Incorporated has $7 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: The term "TIE ratio" typically refers to the "Times Interest Earned" ratio. This is a financial…

Q: Keller Cosmetics maintains an operating profit margin of 8.25% and a sales-to-assets ratio of 3.40.…

A: Step 1:a) and b) We have to calculate the return on assets and return on equity.First of all, we…

Q: Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP)…

A: A ratio that provides information about the company regarding the capability of payoff its debt…

Q: Thomson Trucking has $24 billion in assets, and its tax rate is 25%. Its basic earning power (BEP)…

A: TIE ratio is the ratio of Earning before Interest and Tax divided by the Interest Expense. TIE Ratio…

Q: MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: Times interest earned ratio is calculated by dividing the earnings before interest and tax (EBIT) by…

Q: Dearborn Supplies has total sales of $206 ​million, assets of $94 ​million, a return on equity of…

A: Net income = Profit margin * Sales = 0.078 * $206 million = $16.068 million Equity = Net income /…

Q: Dearborn Supplies has total sales of $195 ​million, assets of $100 ​million, a return on equity of…

A: Return on equity = Net Income / Shareholder's equity Net profit margin = Net Income / Sales 7.4% =…

Q: Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,700. The firm finances…

A: Return on equity (ROE) is the relationship between a company's profit and the investor's return.

Q: Ladders, Inc. has a net profit margin of 5.4% on sales of $49.3 million. It has book value of equity…

A: Profitability ratios refer to the type of ratios that evaluate the financial performance of the…

Q: Moon and Sons Inc. earned $160 million last year and retained $115 million. What is the payout…

A: Lets understand the basics. When entity earns profit, it distributed some of its profit to…

Q: Orono Corp.'s sales last year were $575,000, its operating costs were $362,500, and its interest…

A: As per formula Times interest earned (TIE) ratio = (Sales-Operating cost)/Interest expenses   Where…

Q: Co. has net Income of $2,937, a profit margin of 6.3 percent, a retention ratio of 45 percent, total…

A: Sustainable growth rate is which can be obtained without any raise of any additional debt and…

Q: hite Waters, Inc., has sales of $28 million, total assets of $36 million, and total debt of $11…

A: ROA is return on assets and is measure of profitability and can be calculated by net income divided…

Q: Green Fire, Inc., has sales of $60 million, total assets of $42 million, and total debt of $18…

A: The return on assets is reflective of profitability ratio which will help in finding out the rate of…

Q: MPI Incorporated has $12 billion in assets, and its tax rate calculations. Round your answer to two…

A: Basic earning power = Earnings before interest and tax / Total Assets                            11%…