![MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters (My Accounting Lab)](https://www.bartleby.com/isbn_cover_images/9780133877502/9780133877502_largeCoverImage.gif)
Computing times-interest-earned ratio
The income statement for Utah Communications follows. Assume Utah Communications signed a 120-day, 12% $4,000 note on June 1, 2016, and that this was the only note payable for the company.
UTAH COMMUNICATIONS
Income Statement
Year Ended July 31- 2016
Sales Revenue $ 33.000
Less: Sales Returns and Allowances 5,100
Sales Discounts 2,900
Net Sales Revenue $ 25,000
Cost of Goods Sold 9,000
Gross Profit 16,000
Operating Expenses:
Selling Expenses 730
Administrative Expenses 1,500
Total Operating Expense 2,230
Operating Income 13,770
Other Revenues and (Expenses):
Interest Expense ?
Total Other Revenues and (Expenses) ?
Net Income before Income Tax Expense ?
Income Tax Expense 2,740
Net Income $ ?
Requirements
1. Fill in the missing information for Utah's year ended July 31, 2016, income statement.
2. Compute the times-interest-earned ratio for the company.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 11 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters (My Accounting Lab)
- If $27,000 was generated from operations, $15,000 was used for investing activities, and $11,000 was provided by financing activities, the cash balance would: help mearrow_forwardA stock is expected to pay a dividend of $2.75 at the end of the year and it should continue to grow at a constant rate of 5% a year. If its required return is 15%, what is the stock’s expected price 3 years from now? Carnes Cosmetics Co.’s stock price is $30, and it recently paid a dividend of $1.00. This dividend is expected to grow by 30% for the next three years, then grow forever at a constant rate of g%. If the company’s required rate of return is 9%, at what constant rate is the stock expected to grow after three years? Foodpanda is expected to pay the following dividends over the next four years: $5, $7, $3.75, and $4.26. Afterwards, the company pledges to maintain a constant 4.25% growth in dividends forever. If the required return on the stock is 9%, what is the current share price? Cardinal Corporation just paid a dividend of $15. However, the management expects to reduce the payout by 2% per year, indefinitely. If you require a return of 10% on this stock, how…arrow_forwardCalculate the amount of interest provide answerarrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)