Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below: T i m e s I n t e r e s t E a r n e d = E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s I n t e r e s t E x p e n s e Requirement 1: To determine: Times interest earned ratio for miller Company using the formula as stated above.

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Answer 1

Question

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

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solve qn no. 3

Horngren's Financial & Managerial Accounting: The Managerial Chapters, 8th Edition. E-M:2-19 Accounting for job costs Brook Trailers’ job cost records yielded the following information: Job No. Date Total Cost of Job at July 31 Started Finished Sold 1 21-Jun 16-Jul 17-Jul $ 3,100 2 29-Jun 21-Jul 26-Jul 13,000 3 3-Jul 11-Aug 13-Aug 6,900 4 7-Jul 29-Jul 1-Aug 4,400 Use the dates in the table to identify the status of each job. Compute the following balances for Brook Trailers: a. Work-in-Process Inventory at July 31 b. Finished Goods Inventory at July 31 c. Cost of Goods Sold for July c. COGS $16,100

Donald Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,380 per month. One of the barbers serves as the manager and receives an extra $535 per month. In addition to the base salary, each barber also receives a commission of $3.75 per haircut. Other costs are as follows. Advertising $270 per month Rent $1,010 per month Barber supplies $0.50 per haircut Utilities $160 per month plus $0.15 per haircut Magazines $35 per month Donald currently charges $11.00 per haircut. Compute the break-even point in sales units and in sales dollars. Break-even point Break-even point sales $ haircuts

Answer 2

Question

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

Expert Solution & Answer

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See solution

Answer 5

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

Answer 6

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

Answer 7

Chapter 11, Problem 5APSA

To determine

Times Interest earned: Times interest earned is calculated by dividing income before interest and income tax by interest expense. This ratio shows the ratio of income earned by a company to amount of interest expenses, whether the company is earning enough to pay off its interest expenses. Thus, higher the ratio more capable is the company to pay off its interest expense. Formula for the same is given below:

$T i m e s I n t e r e s t E a r n e d = \frac{E a r n i n g s B e f o r e I n t e r e s t A n d T a x e s}{I n t e r e s t E x p e n s e}$

Requirement 1:

To determine:

Times interest earned ratio for miller Company using the formula as stated above.

Answer 8

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

Answer 9

To determine

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

Answer 10

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

Answer 11

To determine

Requirement 3:

To determine:

Changes If sales Increase by 30%.

Answer 12

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

Answer 13

To determine

Requirement 4:

To determine:

Changes If Sales increase by 50%

Answer 14

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

Answer 15

To determine

Requirement 5:

To determine:

Changes If Sales Increase by 80%

Answer 16

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

Answer 17

To determine

Requirement 6:

To determine:

Changes If sales decrease by 10%

Answer 18

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

Answer 19

To determine

Requirement 7:

To determine:

Changes If sales decrease by 20%

Answer 20

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

Answer 21

To determine

Requirement 8:

To determine:

Changes If sales decrease by 40%

Answer 22

Expert Solution & Answer

Answer 23

Expert Solution & Answer

Answer 24

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Answer 25

Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - What are the three important questions concerning...Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ Ch. 11 - Prob. 6DQ Ch. 11 - Prob. 7DQ Ch. 11 - Prob. 8DQ Ch. 11 - Prob. 9DQ Ch. 11 - Prob. 10DQ

Requirement 2: To determine: Times interest earned ratio for Weaver Company using the formula as stated above.

Requirement 3: To determine: Changes If sales Increase by 30%.

Requirement 4: To determine: Changes If Sales increase by 50%

Requirement 5: To determine: Changes If Sales Increase by 80%

Requirement 6: To determine: Changes If sales decrease by 10%

Requirement 7: To determine: Changes If sales decrease by 20%

Requirement 8: To determine: Changes If sales decrease by 40%

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Chapter 11 Solutions

Requirement 2:

To determine:

Times interest earned ratio for Weaver Company using the formula as stated above.

Requirement 3:

To determine:

Changes If sales Increase by 30%.

Requirement 4:

To determine:

Changes If Sales increase by 50%

Requirement 5:

To determine:

Changes If Sales Increase by 80%

Requirement 6:

To determine:

Changes If sales decrease by 10%

Requirement 7:

To determine:

Changes If sales decrease by 20%

Requirement 8:

To determine:

Changes If sales decrease by 40%