Times Interest EarnedThe following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States:Current YearPrior YearInterest expense$51,000$56,000Income before income tax expense173,400100,800a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place.Current yearPrior yearb. Although Caliber Company had enough earnings to pay interest in the prior year, thein this ratio will beby the debtholders.

Times interest earned ratio = (EBIT)/(Interest expense) Where EBIT is earnings before interest and…

Answered: Times Interest Earned The following…

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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A company reports the following income statement and balance sheet information for the current year: Net income $132,370 Interest expense 11,510 Average total assets 2,180,000 Determine the return on total assets. Round the percentage to one decimal place.fill in the blank %
A company had net sales of $21,000 and accounts receivable of $2,520 for the current period. Its days' sales uncollected equals: (Use 365 days a year.) Multiple Choice 4 43.8 days. 7.4 days. 58.9 days. 8.0 days. 45.2 days.
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 470,015 Income before taxes $3,670,035 Income taxes 1,461,214 Net income $2,208,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.times
s
Selected income statement data follow for Harper, Inc., for the year ended December 31 (in thousands). What is the company's times interest earned ratio? Operating income before interest Interest expense Operating income after interest Income tax Income after tax 35.6 30.6 11.2 24.4 6,617 189 6.428 1,607 4,821
Calculating the Times-Interest-Earned Ratio Beech Company provided the following income statement for last year: Sales $24,350,735 Cost of goods sold 15,300,000 Gross margin $9,050,735 Operating expenses 4,910,685 Operating income $4,140,050 Interest expense 463,015 Income before taxes $3,677,035 Income taxes 1,461,214 Net income $2,215,821 Required: Calculate the times-interest-earned ratio. Round the answer to one decimal place.fill in the blank 1
The income statement of Pratt Inc. reports net sales of $3,749.9 million for the current year. The balance sheet reports accounts receivable, net of $413.6 million at December 31 of the current year and $442.2 million at December 31 of the previous year. The days sales outstanding in the current year are: Select one: a. 40 days b. 42 days c. 9 days d. None of these are correct. e. 8 days
Payton Company has the following segment revenues for the two most recent years. Segment United States Canada Other countries Total revenues Prepare a horizontal analysis of the segment data. Calculate the percentage to four decimal places, then round your answer to one decimal place. For amount or percentage decreases, enter a minus sign. Segment United States Canada Other countries Current Year (in millions) Prior Year (in millions) $835 $635 328 348 214 163 $1,377 $1,146 Total revenues Payton Company Horizontal Analysis Current Year Prior Year Amount Increase Percent Increase (in millions) (in millions) (Decrease) $835 $635 $ 328 348 214 163 $1,377 $1,146 (Decrease) %
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
The following information was taken from the financial statements of Sunland Company: 2021 2020 Gross profit on sales $678,600 $760,000 Income before income taxes 205,400 225,000 Net income 260,000 225,000 Net income as a percentage of net sales 10% 9% Please show steps to finding answer Compute the cost of goods sold in dollars and as a percentage of net sales for each year. (Round percentages to 1 decimal place, e.g. 15.2%) 2021 2020 Cost of goods sold in dollars $enter a dollar amount $enter a dollar amount Cost of goods sold as a percentage of net sales nter percentages rounded to 1 decimal place % nter percentages rounded to 1 decimal place %

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