The times interest earned ratio for both companies for the two years.

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I want to correct answer general accounting question

Answer 1

Question

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

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I want to correct answer general accounting question

Here are comparative balance sheets for Concord Company. CONCORD COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $81,760 $24,640 Accounts receivable 97,440 85,120 Inventories 190,400 213,920 Land 80,640 112,000 Equipment 291,200 224,000 Accumulated depreciation (73,920) (35,840) Total $667,520 $623,840 Liabilities and Stockholders' Equity Accounts payable $41,440 $52,640 Bonds payable 168,000 235,200 Common stock ($1 par) 241,920 194,880 Retained earnings 216,160 141,120 Total $667,520 $623,840 Additional information: 1. Net income for 2022 was $112,000. 2. Cash dividends of $36,960 were declared and paid. 3. Bonds payable amounting to $67,200 were redeemed for cash $67,200. 4. Common stock was issued for $47,040 cash. 5. Equipment that cost $56,000 and had a book value of $33,600 was sold for $40,320 during 2022; land was sold at cost.

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Answer 2

Question

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

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Answer 3

Question

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

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Answer 4

Question

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

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Answer 5

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

Answer 6

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

Answer 7

Chapter 11, Problem 1ADM

A.

To determine

To Compute: The times interest earned ratio for both companies for the two years.

Answer 8

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

Answer 9

B.

To determine

To Interpret: The Company A’s interest coverage from year 1 to year 2.

Answer 10

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

Answer 11

C.

To determine

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

Answer 12

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

Answer 13

D.

To determine

To Interpret: The Company W’s interest coverage from year 1 to year 2.

Answer 14

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

Answer 15

E.

To determine

To Explain: The Company that appears to have the greater protection for creditors.

Answer 16

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Answer 27

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The times interest earned ratio for both companies for the two years.

Solution Summary: The author analyzes how Company A's times interest earned ratio sharply dipped to 0.5 from 2.9, which is a serious sign for the company.

To Compute: The times interest earned ratio for both companies for the two years.

To Interpret: The Company A’s interest coverage from year 1 to year 2.

To Explain: Whether the creditors will get interest or not when the times interest earned ratio is less than 1.

To Interpret: The Company W’s interest coverage from year 1 to year 2.

To Explain: The Company that appears to have the greater protection for creditors.

Chapter 11 Solutions