Calculate the company times interest earned ratio

Assignment Help Accounting Basics
Reference no: EM13126324

A company's income before interest expense and income taxes in 2010 and 2011 is $225,000 and $200,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio for both years, and comment on its level of risk.

Reference no: EM13126324

Questions Cloud

Explain hydrogen phosphate buffer : Hydrogen phosphate buffer, Buffer solutions have the unique ability to resist changes in PH when an acid or base is added to them. One important buffer system that helps to maintain blood pH at a constant value of 7.4 is the hydrogen phosphate buf..
Formulate a linear programming model for problem : Use the graphical method to determine how many of each type of boot should be produced and what are the shadow prices of materials and labour?
Compute the operating income for each of the five customers : Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records are kept on the time and material costs used for each repair. The ..
Compute probability of receiving ten calls in five minutes : Phone calls arrive at the rate of 25 per hour at the reservation desk. Compute the probability of receiving four calls in a 5-minute interval of time.
Calculate the company times interest earned ratio : A company's income before interest expense and income taxes in 2010 and 2011 is $225,000 and $200,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio for both years, and comment o..
What is return on equity capital : What is return on equity capital and what aspect of bank performance is it supposed to measure? Suppose a bank reports that its net after-tax income for the current year is $51 million, its assets totally $1,144 million, and its liabilities amount..
How many grams of p4s10 can be produced : In the reaction 4 P4 + 5 S8 -> 4 P4S10 600 g of P4 is mixed with 1300 g of S8.
Explain buffer solution and henderson-hasselbalch h-h : Explain Buffer Solution and Henderson-Hasselbalch H-H, What is the pH of a solution prepared by mixing 50.00mL of 0.10 M NH3 with 25.00mL of 0.10 M NH4Cl? Assume that the volume of the solutions are additive and that Kb= 1.8 x 10 -5 for NH3.
Illegal immigration : Write a Proposal Argument essay about illegal immigration.The way I am doing it is as:

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accounting techniques as related to the profession

Discuss accounting techniques in general as they relate to the profession. Some things to discuss are the different accounting roles and positions that are out there and how you see yourself fitting into those roles based on what you have learned ..

  Determine the intrinsic mva of division

Given growth rate of 5%, determine the intrinsic MVA of each division. What is the intrinsic MVA of each division if growth is instead 6%?

  Differences between exempt and nonexempt employees

Differentiate between the various rates of pay among the different major groups of employees, and include information about the differences between exempt and nonexempt employees. Discuss how wage and hour legislation has affected employment prac..

  Prepare the journal entries required in the capital projects

The township authorized a bond issue of $11 million for the construction of a pedestrian walkway as part of a downtown revitalization project. An additional $1 million of general revenues is to be used for the project. The authorization was record..

  Calculate how much estate tax would have been saved

Harold and Maude are married and live in a common-law state. Neither have made any taxable gifts and Maude owns (holds title) all their property. She dies with a taxable estate of $15 million and leaves it all to Harold. He dies several years late..

  Fixed asset turnover-returns-allowances

During 2011, Company X sells 500,000 units for $8 each. Sales discounts are $100,000 and sales returns and allowances are $300,000. The company reported a total of $710,000 in fixed assets on January 1, 2011 and $890,000 in fixed assets on Decembe..

  Processing the digital credentials

What function (accounting, finance, or management) should process the digital credentials? In formulating your answer, keep in mind at least the following considerations:

  Information regarding break-even point

Scott Company's variable expenses are 72% of sales. The company's break-even point in dollar sales is $2,450,000. If sales are $60,000 below the break-even point, the company would report a:

  Nonfinancial information which used to evaluate performance

Discuss the nonfinancial information that may be used to evaluate the performance of a college or university and suggest what information provides the most insight to financial performance.

  Variable expenses in the cvp income statement

Paulsen Company sells 100,000 units for $15 a unit. Fixed costs are $350,000 and net income is $250,000. What should be reported as variable expenses in the CVP income statement?

  Translation-transaction and economic exposure

What are the different issues involved with translation exposure, transaction exposure and economic exposure? How can companies plan to mitigate the risk of each? What are the opportunity costs associated with measures to mitigate this risk?

  Compute the gross-margin percentage for each product

the solution of this exercise 16-27 Alternative methods of joint-cost allocation, product-mix decisions. The Southern Oil Company buys crude vegetable oil.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd