The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are $1.75 million, its average tax rate is 30%, and its net profit margin on sales is 8%. If the company does not maintain a TIE ratio of at least 3 to 1, its bank will refuse to renew the loan and bankruptcy will result. What is Morris's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.
Answers
Answer:
8.14 times
Explanation:
The computation of the Time interest earned ratio is shown below:
As we know that
Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)
where,
Earnings before interest and taxes = Income before income tax for the year + Interest expense
But before tha, we need to do the following calculations
The interest amount is
= $350,000 × 0.08
= $28,000
The net profit is
= $1,750,000 × 8%
= $140,000
The EBIT is
= Profit before tax + interest expense
= $140,000 ÷ (1 - 0.30) + $28,000
= $200,000 + $28,000
= $228,000
And, the interest expense is $28,000
So, the TIE ratio is
= $228,000 ÷ $28,000
= 8.14 times
Related Questions
The US Senate overwhelmingly passed the 2022 Defense Authorization Act. The $768 billion "Defense Authorization Act" not only exceeds the defense spending proposed by the Biden administration by $25 billion, but also increases the US defense budget by about 5% compared to last year.
Answers
The US Senate passed the 2022 Defense Authorization Act, a $768 billion bill that surpasses the Biden administration's defense spending proposal by $25 billion and represents a 5% increase in the US defense budget compared to the previous year.
1. The US Senate passed the 2022 Defense Authorization Act.
2. The Defense Authorization Act is a bill that determines the budget and expenditures for the US defense sector.
3. The total amount allocated for the Defense Authorization Act is $768 billion.
4. The defense spending proposed by the Biden administration was exceeded by $25 billion in this Act.
5. The Act represents a 5% increase in the US defense budget when compared to the previous year.
6. This increase in the defense budget indicates a commitment to strengthening the country's defense capabilities.
7. The Act was passed overwhelmingly, indicating strong support from the Senate.
8. The Defense Authorization Act is an essential piece of legislation that ensures the funding and resources necessary for the US military to carry out its operations effectively.
9. The Act covers various aspects of defense spending, including military personnel, equipment, research and development, and strategic initiatives.
10. By passing the Defense Authorization Act, the US Senate has demonstrated its commitment to national security and defense preparedness.
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TREMAINE:
Wants a one-bedroom townhouse in a trendy new development downtown; the average cost is $145,000
Is preapproved for a 4.38% interest rate on a 30-year fixed mortgage
Has saved $15,000 for a down payment
If Tremaine waited until he had $30,000 saved for a down payment, how much money did he save by paying an extra $15,000 upfront? (total cost of home)
Answers
The amount of money he will save by paying an extra $15,000 upfront is $11,974.80.
Loan = Cost - Down payment
Loan = $145,000 - $15,000
Loan = $130,000
Given Information
P/Y= 12, C/Y=12
N= 30*12= 360
I/Y = 4.38
PV= -130,000
Monthly payment = PMT(C/Y, N, I/Y, -PV)
Monthly payment = $649.45
Total interest over the whole term = Monthly payments * Number of payments - Loan
Total interest over the whole term = $649.45*360 - $130000
Total interest over the whole term = $103,802
If waited to have down payment of $30,000: The Loan= $145,000 - $30,000 = $115,000
Given information
N= 30*12= 360
I/Y = 4.38
PV= -115,000
Monthly payment = PMT (N, I/Y, -PV)
Monthly payment = $574.51
Total interest over the course of the mortgage = $574.52*360 - $115,000
Total interest over the course of the mortgage = $91,827.20
Money saved by paying extra $15,000 upfront = $103,802 - $91,827.20
Money saved by paying extra $15,000 upfront = $11,974.80
Therefore, the amount of money he will save by paying an extra $15,000 upfront is $11,974.80.
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Answer:
$11,953
Explanation:
how do u get arrested
Answers
Answer:
breaking the laws that's one way to get arrested, if that's what you are asking lol
Answer:
Basically anything that interferes with the law or disturbs peace
Explanation:
1)hurt someone.
2)Spray paint.
3)Punch someone.
4)Fight with officer.
5)Get out of control at school.
6)Get in a fight.
7)Steal a car.
8)Sell drugs.
9)Hit a police car and drive off.
10)Threaten to hurt yourself.
etc
Fill out the tax forms for:Ivy Perry, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Eagle Beagle, Inc. She owns and operates Type It located near the campus of Florida Community College at 200 College Road. Ivy is a material participant in the business. She is a cash basis taxpayer. Ivy lives at 6020 College Road, Pensacola, Fla. 33210. Ivy's Social Security number is 123-44-5678. Ivy indicates that she wishes to designate $3 to the Presidential Election Campaign Fund. During 2021, Ivy had the following income and expense items: a. $50,000 salary from Legal Eagle Beagle, Inc. b. $20,000 gross receipts from her typing business c. $700 interest income from Florida Community Bank. d. $1,000 Christmas bonus from Legal Eagle Beagle, Inc. e. $60,000 life insurance proceeds on the death of her brother. f. $5,000 check given by her wealthy uncle g. $100 won in a bingo game. h. Expenses connected with the typing business: Office Rent Supplies Utilities and telephone Wages paid to part-time typists Payroll Taxes Equipment Rentals $7,000 4,400 4,680 5,000 500 3,000 i. $8,346 interest expense on a home mortgage (paid to Florida Community Savings& Loan) j. $5,000 fair market value of silverware stolen from her home by a burglar on October 12 2021; Ivy had paid $4,000 for the silverware on July 1, 2008. She was reimbursed $1,500 by her insurance company k. Ivy had loaned $2,100 to a friend, Deb Dobson, on June 3, 2018. Deb declared bankruptcy on August 14, 2021 , and was unable to repay the loan. Legal Eagle Beagle, Inc. withheld Federal income tax of $7,500 and FICA tax of $3,551 (which was adequate for 2021). Assume the loan is a bona fide debt. 1. m. Alimony of $10,000 received from her former husband, Tony Springfield. n. Interest income of $800 on City of Pensacola bonds. o. Ivy made estimated Federal tax payments of $1,000. p. Sales tax from the sales tax table of $654. q. Charitable Contributions of $2,500. What is the Total income, Adjusted gross income, Taxable income, Tax liability, and amount of federal tax due or refunded.
Answers
Based on the provided information, Ivy Perry's tax situation for 2021 is as follows:
Total Income: $71,800
Adjusted Gross Income (AGI): $47,220
Taxable Income: $34,670
Tax Liability: $3,961.40
Federal Tax Refund: $4,538.60
What is taxation?Taxation is the imposition of compulsory levies on individuals or entities by governments.
It should be noted that Taxes are levied in almost every country of the world, primarily to raise revenue for government expenditures, although they serve other purposes.
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57. Mark Green is considering buying a new Honda Accord. The purchase price of the car is $21,000 but Mark has a trade-in worth $4500. Mark needs a loan to buy the car and knows that his local bank requires him to put down 10% of the purchase price after the value of the trade-in is considered. Mark also knows that bank will charge 8% for the loan and require monthly payments over the next 4 years. What is the size of Mark‟s monthly payments if he makes the minimum down payment on the car?
Answers
Note that , Mark's monthly payments will be approximately $335.89 if he makes the minimum down payment on the car.
How is this so?Given
Loan amount - $14,850
Loan term - 48 months
Interest rate - 0.0067 per month(8 % annual rate divided by 12 months)
Using the formula for a fixed- rate loan,the monthly payment (P) can be calculated as follows:
P = (Loan Amount * Monthly Interest Rate) /(1 - (1 + Monthly Interest Rate)^(-Number of Months))
P = ($ 14,850 * 0.0067) /(1 - (1 + 0.0067)^(-48))
computing we have
P = ($99.50) / (1 - (1.0067)^(-48))
P = ($99.50) / (1 - 0.7035)
P = ($99.50) / (0.2965)
P ≈ $335.89
Therefore, Mark's monthly payments will be approximately $335.89 if he makes the minimum down payment on the car.
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>>
Which of these masking techniques is used for masking a flush-mounted part?
O Reverse masking
O Back masking
O Reverse taping
O Fine line masking
Answers
A lot of painter use different type of masking techniques. The type of masking techniques that is used for masking a flush-mounted part is Fine line masking.
Fine Line tapes are known too have thin, smooth backings that are made to create low-profile paint edges.
A painter can also have a sharp paint lines by using fine line tapes with smooth backings coated with some adhesives to stop paint edge bleed.
Scotch Fine Line 218, a type of fine line masking tape is made for straight line application, and it can be found in nine narrow widths for a number of paint striping options.
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Marley Woods Resort would like to buy some land and build a luxury living center. The anticipated total cost is $20.5 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire construction project. Management has decided to save $1.2 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on the funds it saves. How long does the company have to wait before expanding its operations
Answers
Answer:
3.82 years
Explanation:
FV of annuity = P[(1+r)^n - 1 / r]
Where FV = $20,500,000; P = $1,200,000; r = 6.25%/4 = 1.5625% quarterly
20,500,000 = 1,200,000 * [1+0.015625)^n - 1/0.015625]
20,500,000 / 1,200,000 = [1+0.015625)^n - 1/0.015625]
17.0833 = [(1+0.015625)^n - 1 / 0.015625]
17.0833 * 0.015625 = (1+0.015625)^n - 1
0.266927 = (1+0.015625)^n - 1
1.266927 = (1 + 0.015625)^n
Taking log of both sides of equation
LN(1.266927) = n*LN(1.015625)
n = LN(1.266927)/LN(1.015625)
n = 0.236594/0.015504
n = 15.26 quarters
No of years = 15.26/4
No of years = 3.82 years
what are the impact of retail shop fitting strategy?
Answers
The impact of a retail shopfitting strategy is that it ensures that the retail store attracts and engages the customers.
What is retail shopfitting?Retail shopfitting is the use of colors, displays, and various fittings as a strategic business move and attractively fitting the retail shop, ensuring:
Increased visual impactCustomers find your storeIncreased customer salesThe communication of retail brandImproved business performance and profitability.Thus, the impact of a retail shopfitting strategy is that it ensures that the retail store attracts and engages the customers.
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Many graduates choose to go to a community college or a trade school after graduation to save money on tuition. Typically, a trade school program takes two years to complete and ends with
an apprenticeship in the student's chosen trade to provide hands-on training.
How does the decision to go to a trade school rather than a university affect the long-term financial goals of an individual? IE.1.4
O It leads to less hands-on training and less difficulty finding a job.
O It creates less debt from tuition and the ability to enter the workforce sooner.
O It leads to more hands-on training and more difficulty finding a job.
O It creates more debt from tuition, and trade school takes longer to complete.
Answers
Going to a trade school rather than a university can positively affect the long-term financial goals of an individual by Option B. It creates less debt from tuition and the ability to enter the workforce sooner.
One of the primary advantages of choosing a trade school is the lower cost of tuition compared to a traditional university. Trade schools typically have lower tuition fees, making them more affordable for many students. This translates to less debt burden, allowing individuals to start their careers with a smaller financial obligation.
Additionally, trade school programs are typically shorter in duration, typically taking two years to complete. This means that students can enter the workforce and start earning sooner compared to the longer duration of university programs. By gaining early entry into the workforce, individuals have the opportunity to start earning and saving money earlier, contributing to their long-term financial goals.
Furthermore, trade school programs often emphasize hands-on training and practical skills development. This prepares students directly for their chosen trade and enhances their employability. They gain specific, job-related skills that are in demand, which can make it easier for them to find employment in their field upon completion of the program.
In contrast, attending a university often involves higher tuition costs, longer program durations, and a broader education rather than a focused trade-specific curriculum. While universities provide valuable knowledge and opportunities for certain careers, trade schools offer a more cost-effective and streamlined path for individuals seeking hands-on training and immediate entry into the workforce. Therefore, the correct option is B.
The question was incomplete, Find the full content below:
Many graduates choose to go to a community college or a trade school after graduation to save money on tuition. Typically, a trade school program takes two years to complete and ends with an apprenticeship in the student's chosen trade to provide hands-on training. How does the decision to go to a trade school rather than a university affect the long-term financial goals of an individual? IE.1.4
A. It leads to less hands-on training and less difficulty finding a job.
B. It creates less debt from tuition and the ability to enter the workforce sooner.
C. It leads to more hands-on training and more difficulty finding a job.
D. It creates more debt from tuition, and trade school takes longer to complete.
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Which of the following is the most relevant example of value in use pricing? A special replacement part is worth becuase: it cost much more to make or the price is more elastic or its maker has more famous brand or it results in reduce maintenance cost?
Answers
Answer:
I think 1 option is right answer
A technique for pricing in which an effort is made to capture a portion of the savings that a customer would experience by purchasing a company's goods. Thus, option A is correct.
What is the value in use pricing?Value pricing refers to the practice of businesses setting prices based on what consumers think a product is worth. Commoditized products are not well suited for value pricing.
Thus, the price that consumers are prepared to pay for a product can rise as a result of the addition of value. A value-added feature might be giving a new computer a year's worth of complimentary tech help.
Additionally, people can add value to the services they provide by entering the profession with advanced skills.
Therefore, the farmer could make more money by erecting commercial or residential structures on the property, the value-in-use of farmland in an urban area may be significantly lower than its highest and best use.
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Which of the following would be an advantage of engaging in international
trade over domestic trade?
Answers
Larger growth opportunities based on market size would be an advantage of engaging in international trade over domestic trade. Thus, option (b) is correct.
Businesses can reach a larger market through international trade, increasing their revenue. A company can run a higher risk of failing if it primarily concentrates on the home market since it is more susceptible to domestic economic developments.
International trading enables a business to diversify its clientele and lessen its reliance on a single market.
As a result, the significance of the advantage of engaging in international trade over domestic trade are the aforementioned. Therefore, option (b) is correct.
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Your question is incomplete, but most probably the full question was.
Which of the following would be an advantage of engaging in international
trade over domestic trade?
A. Higher cost of production due to higher labor costs
B. Larger growth opportunities based on market size
C. Clear understanding of laws and statutes concerning business operations
D. Less choice for consumers because of fewer products
Which of the following is a fixed expense for Maria's sandwich food truck?
(A) Salaries for her employees (B) Truck insurance (C) Advertising (D) All of the above
Answers
Answer:
Salaries for her employees
Explanation
Salaries for her staff are listed below as a fixed expense for Maria's sandwich food truck. As a result, choice (A) is the right one.
What is a Food Truck?A food truck is a sizable motorized vehicle (like a van) or trailer that is outfitted to prepare, cook, serve, and/or sell food.Some, like ice cream trucks, offer frozen or premade food; others, with on-board kitchens, either make food from scratch or reheat food that was made in a physical commercial kitchen. Sandwiches, hamburgers, french fries, and other local fast food favorites are typical.
Food truck that served gourmet cuisine, a range of specialties, and ethnic menus were incredibly popular by the early 2010s, amid the pop-up restaurant craze.
Cold drinks like water and soda pop may be sold by food trucks. Along with food stalls, carts, and trucks,
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Portman Industries just paid a dividend of $2.16 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 16.00% over the next year. After the next year, though, Portman's dividend is expected to grow at a constant rate of 3.20% per year. The required rate of return is 13.6%. Assuming that the market is in equilibrium.
Required:
What is the expected dividend yield for Portman's stock today?
Answers
Answer:
Expected Dividend Yield is 10.4%
Explanation:
As we know that the Expected Dividend Yield for Portman’s Stock can be calculated using the following formula:
Expected Dividend Yield = [D0 x (1 + g) / Intrinsic Value (Step1)] * 100
Here
Dividend just paid is $2.16 per share
The growth rate for the Portman's stock is 16% for the first year
Ke is 13.6%
Intrinsic Value = $24.09 (See Step 1)
By putting the above values in the above equation, we have:
Expected Dividend Yield = [$2.16 x (1 + 0.16) / $24.09] x 100
= 10.4%
Step 1. Intrinsic Value can be calculated using the following formula:
Intrinsic Value = D1 / (1 + r)^1 + Horizon Value (Step 2) / (1 + r)^1
Here
Growth (g) will be 3.2% for the year 2 because D2 = D1 * (1 + g)
Horizon value = D1 * (1 + g) / (Ke – g) = $2.5056 * (1 + 3.2%) / (13.6% – 3.2%)
= $2.5858 / 0.0752 = $24.86 per share
So by putting the above values in the step 1, we have:
= $2.5056 / (1 + 0.136)1 + $24.86/(1 + 0.136)1
= $24.09 per share
Question 5
If an individual has a Holland code suggesting Conventional strengths,
career in which field might be most satisfying?
h
O Finance
O Teaching
O Food Service
O Medicine
Answers
If an individual has a Holland code suggesting Conventional strengths, the career in finance field might be most satisfying. Thus, the correct answer is option B.
What is a Holland Code?The Holland Codes, also known as the Holland Occupational Themes, are a taxonomy of interests based on a career and vocational choice theory developed by American psychologist John L. Holland.
The Holland Codes are a component of the Strong Interest Inventory, which is used to assess interests. Holland defines the "Conventional Type" as a person who has "a preference for actives that entail the explicit, ordered, systematic manipulation of data . These behavioral tendencies, in turn, lead to the development of clerical, computational, and business system competencies.
Therefore, a career in finance would be appropriate for an individual who has a Holland code suggesting Conventional strengths.
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Find the median and mean of the data set below:
Median =
Tr I
11, 6, 37, 34, 7
Mean =
Answers
The answer is median and mode
How to Find the mean and median
Add up all data values to get the sumCount the number of values in your data setDivide the sum by the countThe mean is the same as the average value in a data set.The median x˜ is the data value separating the upper half of a data set from the lower half.Arrange data values from lowest to highest valueThe median is the data value in the middle of the setIf there are 2 data values in the middle the median is the mean of those 2 values.Median ExampleFor the data set 1, 1, 2, 5, 6, 6, 9 the median is 5.For the data set 1, 1, 2, 6, 6, 9 the median is 4. Take the mean of 2 and 6 or, (2+6)/2 = 4.To learn more about mean and median
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At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
Machine A Machine B Machine C
Invoice price paid for asset $20,400 $37,300 $22,100
Installation costs 2,300 2,000 600
Renovation costs prior to use 2,900 2,500 1,700
By the end of the first year, each machine had been operating 5,400 hours.
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Machine Life Residual Value. Depreciation Method
A 9 years $1,300 Straight-line
B 77,000 hours. 3,300 Units-of-production
C 8 years 3,100 Double-declining-balance
CREATE A JOURNAL ENTRY WORKSHEET
Record the depreciation expense for year 1
Answers
Answer: Debit Depreciation Expense $11,714 Credit Accumulated Depreciation on : Machine A $3,400, Machine B $2,500 Machine C $5,814
Explanation:
challenge that south Africa's main coal export terminal is currently facing
Answers
According to Frost & Sullivan industrial automation, mining and manufacturing, the South African coal mining industry is dealing with a number of difficulties, with railway capacity limitations being the most important one impeding coal transportation to the Richards Bay Coal Terminal (RBCT), where it is shipped to the export market.
The top 10 coal producers in the world, including South Africa, have witnessed an increase in shipments to Europe this year as those nations look for alternatives to Russian coal in the wake of Russia's war on Ukraine.
In spite of the rising demand from Europe, South Africa is having trouble transporting coal. Currently, it is challenging to move significant volumes of coal swiftly from mines to ports due to the nation's relatively limited rail and road infrastructure.
The ports that South African coal producers use are many. The major terminal, Richards Bay Coal Terminal, is one of the biggest in the world and has an annual capacity of 91 million tons of coal; but, as I previously stated, in 2022, the capacity for rail will be 56 million tons.
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What describes the relationship between edge computing
and Cloud computing?
Answers
The relationship between Edge computing and cloud computing is a that edge computing is a subsection of cloud computing. Cloud computing is about hosting applications in a core data centre whlie edge computing is about hosting applications closer to end users either in smaller edge data centres.
What is computing?Computing can be defined as the use of a computer to process data or perform calculations. Computing may encompass the design and development of software and hardware systems for a broad range of purposes often structuring processing and managing any kind of information
Therefore edge computing is a subsection of cloud computing
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Tara has started a new job ad has been assigned to work on a team. She is anxious about getting along with her new team members. What is one piece of advice you could to tara about working with others
Answers
Answer:
A
Explanation:
Avoid gossip
I Think so
Bill wants to attend a college with a current tuition of $10,000 a year. He will graduate from high school in five years. Roughly how much will Bill need to save for one-year's tuition to account for an
annual rate of inflation of 3%?
$638.30
O $667.50
O $656.50
O $633.30
Answers
Bill need to save $11,592 for one-year's tuition to account for an annual rate of inflation of 3%.
The option is not listed above.
To compute for future Value the formula is given below;FV = Present value(PV) × (1 + rate of interest)^time period
pv= $10,000
rate of interest= 3% = 3/100 = 0.03
time = 5years
FV= $10000× (1+0.03) ^5
FV= 10000× 1.1592
FV= $11,592.7
Therefore, Bill need to save $11,592 for one-year's tuition to account for an
annual rate of inflation of 3%.
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ANSWER FAST PLEASE!!
What could a consumer do to help his or her community? *financial literacy*
A. buy imported goods
B. user fewer plastic utensils
C. buy goods online
D. purchase goods produced locally
Answers
A consumer can help his or her community financial literacy wise by purchasing the goods produced locally because its helps the economy in GDP.
What is financial literacy?A financial literacy refers to a possession of an ability to understand financial skills including personal financial management, budgeting, investing etc
Hence, a consumer can help his or her community financial literacy wise by purchasing the goods produced locally because its helps the economy in GDP.
Therefore, the Option C is correct
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ACTIVITIES
Activity 15-1 Payroll Preparation
Compute the payroll amounts for a biweekly period using the
information in this table. Use information given in the chap-
ter and the amounts listed here when figuring tax. Complete
Payroll Information
Employee Name
Dixon, Amy
Dorland, Robert
Gordon, Margaret
Michaels, Connie
Scott, Patrick
Sears, Jackie
Payroll Record
Employee
Name
Dixon, Amy
Dorland, Robert
Gordon, Margaret
Michaels, Connie
Scott, Patrick
Sears, Jackie
Hours Worked
80
75
48
64
80
80
Gross
Earnings
FICA
Tax
the payroll record. (No employee has met the maximum
amount for Social Security tax.) Procedure 15.1 can be used
as a guide in completing this exercise.
Hourly Rate
14.73
13.40
14.80
16.25
14.02
13.21
Federal
Withholding
Tax
Marital Status
M
M
S
S
M
M
State Income
Tax (2%
of gross
earnings)
Exemptions
0
2
1
0
3
1
Total
Deductions
Net
Earnings
Answers
Payroll is one of the most important things which has been and also needs to be paid in the process of time.
What is the meaning of the Payroll?Payroll definition could be expressed simply as the act of paying employees. Its steps include making a list of paid personnel, figuring out their hours worked, estimating their pay, paying them on time, and recording the cost of payroll.
The process that paying employees' salaries is known as payroll. The first step is to create a list of something like the employees who just want to be paid, and the last step is to keep track of the costs. Payroll, HR, as well as finance teams, must all work together to complete the challenging process.
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The financial statements for Castile Products, Inc., are given below:
Castile Products, Inc.
Balance Sheet
December 31
Assets
Current assets:
Cash $ 20,000
Accounts receivable, net 230,000
Merchandise inventory 350,000
Prepaid expenses 7,000
Total current assets 607,000
Property and equipment, net 890,000
Total assets $ 1,497,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 210,000
Bonds payable, 9% 330,000
Total liabilities 540,000
Stockholders’ equity:
Common stock, $10 par value $ 110,000
Retained earnings 847,000
Total stockholders’ equity 957,000
Total liabilities and equity $ 1,497,000
Castile Products, Inc.
Income Statement
For the Year Ended December 31
Sales $ 2,120,000
Cost of goods sold 1,200,000
Gross margin 920,000
Selling and administrative expenses 650,000
Net operating income 270,000
Interest expense 29,700
Net income before taxes 240,300
Income taxes (30%) 72,090
Net income $ 168,210
Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $290,000. All sales were on account.
Assume that Castile Products, Inc., paid dividends of $2.95 per share during the year. Also assume that the company’s common stock had a market price of $72 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.
Required:
Compute financial ratios as follows:
1.
Earnings per share. (Round your answer to 2 decimal places.)
2.
Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
3.
Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)
4.
Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)
5.
Book value per share. (Round your answer to 2 decimal places.)
Answers
Answer:
1. The Earning per share is $ 15.29 per share
2. The Dividend payout ratio is 0.193 or 19.3%
3. The Dividend yield ratio is 0.041 or 4.1%
4. The Price-earnings ratio is 4.7
5. The Book value per share is $ 87 per share
Explanation:
1. To calculate Earning per share we use the following formula:
Earning per share = Net income /Number of common shares
Number of common shares= 110,000 /10 = 11,000 shares
Earning per share= $168,210 /11,000
Earning per share = $ 15.29 per share
2. To calculate Dividend payout ratio we use the following formula:
Dividend paid = 2.95*11n000= $32,450
Payout ratio = $32,450 / $168,210
Payout ratio =0.193 or 19.3%
3. To calculate Dividend yield ratio we use the following formula:
Dividend yield ratio =dividend /current price
Dividend yield ratio = 2.95 / 72
Dividend yield ratio =0.041 or 4.1%
4. To calculate Price-earnings ratio we use the following formula:
PE ratio =Market price per share /EPS
PE ratio= 72 /15.29
PE ratio = 4.7
5. To calculate Book value per share we use the following formula:
Book value per share =Total sharehoders equity /number of share
Book value per share= $957,000/11,000
Book value per share= $ 87 per share
1. The Earning per share is $15.29 per share
2. The Dividend payout ratio is 19.3%
3. The Dividend yield ratio is 4.1%
4. The Price-earnings ratio is 4.7
Calculation of Net income1. To Compute Earning per share we use the following formula:
The formula of Earning per share is = Net income /Number of common shares
Number of common shares is = 110,000 /10 = 11,000 shares
Earning per share is = $168,210 /11,000
Earning per share is = $15.29 per share
2. To compute Dividend payout ratio we use the following formula:
Dividend paid is = 2.95*11n000= $32,450
Payout ratio is = $32,450 / $168,210
Therefore, Payout ratio =0.193 or 19.3%
3. To Compute Dividend yield ratio we use the following formula:
Then Dividend yield ratio =dividend /current price
Dividend yield ratio = 2.95 / 72
Therefore, Dividend yield ratio is = 0.041 or 4.1%
4. To Compute Price-earnings ratio we use the following formula:
PE ratio is =Market price per share /EPS
PE ratio is = 72 /15.29
Thus, PE ratio = 4.7
5. To Compute the Book value per share we use the following formula:
Book value per share is =Total shareholders equity /number of share
Then, Book value per share= $957,000/11,000
Hence, Book value per share= $ 87 per share
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Consider the following T-account for cash.
1. Compute the balance of the cash account.
2. Specify which of the following cash transactions would have resulted in the $4,000 posting to the account. (You may select more
than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the
box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded
as incorrect.)
Receiving cash from customers
3. Specify which of the following cash transactions would have resulted in the $1,700 posting to the account. (You may select more
than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the
box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded
as incorrect.)
no random answers please ty
Answers
a) The computed cash account debit balance based on the T-account is $5,100.
b) The cash transactions that would have resulted in the $4,000 posting to the cash account include:
Receiving cash from customersIssuing stock (for cash)Borrowing moneySelling assets (for cash).c) The cash transactions that would have resulted in the $1,700 posting to the cash account include:
Paying cash for suppliesPaying cash for utilitiesPaying cash for rentPaying cash for equipmentPaying cash for employees salariesPaying cash for dividends.What transactions are posted to the cash account?Only cash transactions are posted to the cash account.
The transactions include receipt of cash (debited) and payment of cash (credited).
T-accounts are general ledger accounts in the form of the letter T showing the debit and credit sides.
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Which of the following is true of the credit and debit columns in the
adjusted trial balance?
OA. The credit should be larger than the debit.
B. The debit should be larger than the credit.
O C. The credit and debit should match.
O D. Together they should equal owner's equity.
Answers
Answer:
C.
Explanation:
Scenario 2:
The price of gas rises by $1 per gallon the last month. As you travel through southern california you notice an increase in oil drilling operations. In previous trips you noticed a handful of operations, this trip you're seeing hundreds and hundreds of oil manufacturing centers.
Does this scenario relate to the law of supply, demand, or neither? Justify why you believe this to be true.
Answers
Answer:
both
Explanation:
there is not enough supply to fit the demand meaning said oil is more valuable so it is a good time to drill for more because it is more expensive and you know you can charge more because people will have no choice but to purchase it at your price until supply exceeds demand which will make it less valuable until the demand once again is higher than supply which will make it more valuable again.
Can someone explain to me this economics homework assignment?
Answers
An endogenous variable is a variable that is determined within a model or system. An example could be the level of employment in a particular region, which is determined by factors such as population, labor force participation rate, and job creation within the region.
What is an exogenous variableAn exogenous change is a change that occurs outside of a model or system and affects it. For example, an exogenous change could be a sudden increase in the price of oil due to geopolitical events, which could impact the overall economy.
An exogenous change can impact various factors of spatial utility, depending on the nature of the change. For example, if there is a sudden increase in the price of oil, this could impact transportation costs, which in turn could impact the accessibility of goods and services, and therefore impact the spatial utility of different locations. Similarly, an exogenous change in government policies or regulations could impact the availability of certain amenities or resources in a given location, and therefore impact the spatial utility of that location.
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1. Identify an endogenous variable
2. Identify an exogenous change
3. Which factor of (spatial) utility does an exogenous change impact? In what ways?
Types of controls used to assess the effectiveness of marketing operations
Answers
Existing customer analysis
Testing research with a focus group
Customer opinions and feedback
Your welcome if this helps
The cost of production report may be used for all the following except analyzing the change in a.direct materials costs per equivalent units between periods. b.general and administrative costs per equivalent units between periods. c.costs per equivalent units between periods. d.conversion costs per equivalent units between periods.
Answers
Answer:
b. general and administrative costs per equivalent units between periods.
Explanation:
General and Administrative costs are not production costs. They are categorized as period costs that are expensed during the period in which they are incurred.
Production Costs reports on Costs incurred during production. These included costs that vary with volume produced (variable) and those that do not vary with volume produced (overheads).
Imagine that you are getting your first job in cosmetology. Which pay structure would you prefer and why? Once you have explained your choice, think of three questions that you could ask in a job interview for the situation you have chosen.
Answers
If I were getting my first job in cosmetology, I would prefer a salary structure over an hourly wage or commissioned pay.
A salary provides stability and predictability in my income which would be preferable as a new professional still learning the ropes. I would know exactly what I would earn each month to cover my expenses without worrying about fluctuations in hours worked or services provided. It would also allow me to focus on providing the best experience and care for clients without constant calculations of payments or commissions in the back of my mind.
Three questions I might ask in an interview for a salaried cosmetology position could be:
1. What is the potential for career growth in this role and at this salon? I want to build a long-term career as a cosmetologist.
2. What continuing education or training is provided for stylists? As new techniques and services develop, I want to ensure I have opportunities to learn and improve my skills.
3. What is the salon's philosophy on work-life balance? While I am passionate about this work, I also want to ensure reasonable hours and time off to avoid burnout. Work-life balance is important for sustaining a career.
Does this explanation and set of sample questions seem reasonable? I can provide any clarification or additional suggestions if needed.