The following data were taken from the financial records of Glum Corporation for 20X1:SalesBond interest expenseIncome taxesNet income$3,600,000120,000350,0001,050,000Required:How many times was bond Interest earned in 20X1? (Round your answer to 2 decimal places.)Interest coveragetimes On January 1, 20X1, River Company's Inventory was $400,000. During 20X1, the company purchased $1,900,000 of additionalInventory, and on December 31, 20X1, Its Inventory was $500,000.Required:What was the Inventory turnover for 20X1?Inventory turnovertimes

Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question. Time Interest earned ratio: Time Interest earned ratio is calculated by dividing the Earnings before interest and tax by the Interest expense. This ratio indicates the company's ability to pay its debts. Times interest earned (Interest coverage) = Earnings before interest and tax (EBIT) / Interest expense where, EBIT = Net income + Interest expense + Tax expenseEBIT = Net income + Interest expense + Tax expense = $1,050,000 + $120,000 + $350,000 = $1,520,000 Interest coverage = Earnings before interest and tax (EBIT) / Interest expense = $1,520,000 / $120,000 = 12.67 times

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The following data were taken from the financial records of Glum Corporation for 20X1: Sales Bond interest expense Income taxes Net income $3,600,000 120,000 350,000 1,050,000 Required: How many times was bond Interest earned In 20X1? (Round your answer to 2 decimal places.) Interest coverage times

The following data were taken from the financial records of Glum Corporation for 20X1: Sales Bond interest expense Income taxes Net income $3,600,000 120,000 350,000 1,050,000 Required: How many times was bond Interest earned In 20X1? (Round your answer to 2 decimal places.) Interest coverage times

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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