The data below are for Evie Company. Total assets $10,000 Income before interest and taxes 1,000 Total liabilities 5,500 Total equity 4,500 Interest expense 400 Sales 15,000 Cost of goods sold 9,000
The data below are for Evie Company. Total assets $10,000 Income before interest and taxes 1,000 Total liabilities 5,500 Total equity 4,500 Interest expense 400 Sales 15,000 Cost of goods sold 9,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Certainly! Below is a transcription suitable for an educational website:
---
**11. Financial Analysis: Evie Company**
The data below are for Evie Company:
- **Total assets**: $10,000
- **Income before interest and taxes**: $1,000
- **Total liabilities**: $5,500
- **Total equity**: $4,500
- **Interest expense**: $400
- **Sales**: $15,000
- **Cost of goods sold**: $9,000
- **Accounts payable**: $1,200
- **Accounts receivable**: $1,500
**Question**: What is Evie Company's TIMES INTEREST EARNED RATIO?
- [ ] 0.04
- [ ] 15.00
- [ ] 0.40
- [ ] 0.07
- [ ] 2.50
---
**12. Financial Analysis: Skye Company**
The data below are for Skye Company:
- **Total assets**: $10,000
- **Income tax expense**: $1,000
- **Accounts receivable**: $2,500
- **Total equity**: $6,500
- **Interest expense**: $400
- **Sales**: $15,000
- **Cost of goods sold**: $9,000
- **Accounts payable**: $1,200
- **Net income**: $1,500
**Question**: What is Evie Company's DEBT-TO-EQUITY RATIO?
- [ ] 0.54
- [ ] 1.22
- [ ] 0.80
- [ ] 0.45
- [ ] 0.60
---
**13. Mortgage Calculation**
You owe $300,000 on a mortgage loan. The loan is to be repaid in equal payments at the end of each month for the next 30 years. The interest rate on the loan is 4.35%, compounded monthly.
**Question**: What is the amount of each of the monthly mortgage payments?
- [ ] $1,493.44
- [ ] $1,087.50
- [ ] $1,507.81
- [ ] $9,046.89
- [ ] $13,050.00
---
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Transcribed Image Text:Certainly! Below is a transcription suitable for an educational website:
---
**11. Financial Analysis: Evie Company**
The data below are for Evie Company:
- **Total assets**: $10,000
- **Income before interest and taxes**: $1,000
- **Total liabilities**: $5,500
- **Total equity**: $4,500
- **Interest expense**: $400
- **Sales**: $15,000
- **Cost of goods sold**: $9,000
- **Accounts payable**: $1,200
- **Accounts receivable**: $1,500
**Question**: What is Evie Company's TIMES INTEREST EARNED RATIO?
- [ ] 0.04
- [ ] 15.00
- [ ] 0.40
- [ ] 0.07
- [ ] 2.50
---
**12. Financial Analysis: Skye Company**
The data below are for Skye Company:
- **Total assets**: $10,000
- **Income tax expense**: $1,000
- **Accounts receivable**: $2,500
- **Total equity**: $6,500
- **Interest expense**: $400
- **Sales**: $15,000
- **Cost of goods sold**: $9,000
- **Accounts payable**: $1,200
- **Net income**: $1,500
**Question**: What is Evie Company's DEBT-TO-EQUITY RATIO?
- [ ] 0.54
- [ ] 1.22
- [ ] 0.80
- [ ] 0.45
- [ ] 0.60
---
**13. Mortgage Calculation**
You owe $300,000 on a mortgage loan. The loan is to be repaid in equal payments at the end of each month for the next 30 years. The interest rate on the loan is 4.35%, compounded monthly.
**Question**: What is the amount of each of the monthly mortgage payments?
- [ ] $1,493.44
- [ ] $1,087.50
- [ ] $1,507.81
- [ ] $9,046.89
- [ ] $13,050.00
---
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