Use the following information for Taco Swell, Inc., (assume the tax rate is 24 percent):      2017 2018     Sales $ 15,573   $ 15,336     Depreciation   1,741     1,816     Cost of goods sold   4,379     4,787     Other expenses   986     864     Interest   835     966     Cash   6,187     6,706     Accounts receivable   8,120     9,667     Short-term notes payable   1,250     1,227     Long-term debt   20,560     24,836     Net fixed assets   51,064     54,513     Accounts payable   4,512     4,884     Inventory   14,419     15,368     Dividends   1,350     1,698

Q: Which of the following interprets the interest corage ratio of RED Merchandising?

A: Interest coverage ratio = operating profit/interest expense

Q: Use the following to answer questions 28-29: Accounts receivable Allowance Cash realizable value…

A: Allowance method:The allowance method, for debts predicts uncollectible accounts by estimating the…

Q: Company Ajax has the following information from its financial statements in 2021. The annual sales…

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Q: May I ask for an explanation and solution to the question for a better understanding. Thank you!…

A: Opening Accounts Receivable = 25,000 Closing Accounts Receivable = 15,000 Average Accounts…

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A: Formula used: Current ratio =  Current Assets / Current liabilities. Division of current liabilities…

Q: The following extracts of the financial statements of Wiggo have been obtained: 2015 Inventories…

A: Quick ratio: Quick ratio is also called the liquidity ratio. Quick ratio measure the organization…

Q: Batman Company provides the following data for the year 2020: Cash sales - 500,000; Collection from…

A:

Q: Adobe Incorporated reported the following accounts and amounts (in millions) in its financial…

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A: Average collection period is the measure that helps the entity in knowing its efficiency in…

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A: Working Note#1:Computation of  operating cash flow:Snapshot of cell reference:Snapshot of…

Q: 17. Gross income $450,0003; Expenses $200,000; Loan Payment = $23,740; Loan Interest Paid $6,000;…

A: Gross income = $ 450,000 Expenses = $ 200,000 Loan payment = $ 23,740 Loan interest paid = $ 6,000…

Q: The information below has been extracted from the financial statements of Gifts Pty Ltd. Sales…

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A: Income statement is a statement that helps in determining the income or the profit and loss of a…

Q: 6- Consider the following financial statements (in millions of TL). What would be the retained…

A: Retained earnings for the Year 2016 = Change in the retained earnings

Q: Buffalo Corporation had the following 2020 income statement. Revenues   $104,000 Expenses…

A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the…

Q: Q9: You have the following data :Operating income 30,000 ID, interest revenue 5,000 ID, interest on…

A: Net profit before tax = Operating Income + Interest Revenue - Interest on notes and bonds + Rental…

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A: The correct answer is:-  Option b) 35

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A: The following calculations are done in the records of CASAN Ltd.

Q: Black Co. net accounts receivable were $500,000 at 12/31/2016 and $600,000 at 12/31/2017. Net cash…

A: ACCOUNT RECEIVABLE 500,000 AT 12/31/2016 ACCOUNT RECEIVABLE 600,000 AT 12/31/2017 NET CASH SALE…

Q: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The…

A: Required 1:

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A: The gross sales are calculated as sum of net sales, sales discount and allowance and sales returns.

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Q: am. 119.

A:

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Q: General Mills reported the following information in its 2020 financial statements ($ in millions):…

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A: Stet 1

Q: How do I calculae the times interest earned ratio?

A: Calculate the times interest earned ratio as follows: Times interest earned ratio = EBIT / Interest…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.