What is morrit tie ratio for morrit corporation

Assignment Help Managerial Accounting
Reference no: EM132946639

Problem1 : Times-Interest-Earned Ratio, The Morrit Corporation has $900,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $6 million, its average tax rate is 25%, and its net profit margin on sales is 6%. If the company does not maintain a TIE ratio of at least 5 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132946639

Questions Cloud

Calculate haslam profit margin and liabilities-to-assets : Calculate Haslam's profit margin and liabilities-to-assets ratio. Assume you are given the relationships for the Haslam Corporation.
Value of the investment in two years : Your brother has asked you to help him with choosing an investment. He has $4,100 to invest today for a period of two years. You identify a bank CD that pays an
Delivery obligation at port of hongkong : According to Incoterms 2020, under CIF Hongkong, the seller fulfills his delivery obligation at port of Hongkong. All risks and costs during transit shall be bo
Calculate the expected value of the share : You are the owner of A Rinky Dink Company and you have been very successful in your business undertakings and the company has been able to grow at a modest rate
What is morrit tie ratio for morrit corporation : If the company does not maintain a TIE ratio of at least 5 to 1, then bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE ratio
Rightward shift of the market demand curve for labor : Which of the following results in a rightward shift of the market demand curve for labor?
Compute the indirect manufacturing costs per unit : Compute the indirect manufacturing costs per unit using direct labor hours to the single plantwide predetermined overhead allocation rate.
Key stakeholders of project : Assume that you are managing a project and you discover in the day following a project review meeting that there is significant work that you and your team fail
Establish an online presence : In this assignment, we'll follow the database design process with a step-by-step example. Your client, Wellness Week is a small, specialized publisher that publ

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How to prepare a cost of production report

How to Prepare a cost of production report? During April Department No.1 started productions of 45000 units. Cost added in department No.1

  What is yearly amortization if all payments are to be made

If money is worth 8% compounded annually, what is her yearly amortization if all payments are to be made at the beginning of each year?

  Compute process quality yield

Compute process productivity. Compute process quality yield. The Pretty Corporation produces small plastic dolls in its Davao manufacturing plant.

  Aloha company uses a perpetual inventory system

Aloha Company uses a perpetual inventory system. It entered into the following calendar year 2013 purchases and sales transactions.

  What dollar sales are necessary to achieve an after tax

BITCO has fixed costs of $100,000 and a 25% contribution margin ratio. What dollar sales are necessary to achieve an after tax net income of $120,000

  Compute degree of operating leverage to two decimal places

By using the degree of operating leverage, estimate the percentage change in net operating income that should result from a 17% increase in sales.

  Compute beckers direct materials purchases budget

July's production units is expected to be 650 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June

  Describe the experiment that the manager could use to test

Specify the variables and groups that would describe the experiment that this manager could use to test this hunch. Explain your choices.

  How many units of product a must be sold to break-even

Fixed costs total $400,000 and the weighted-average contribution margin is $100. How many units of product A must be sold to break-even

  Calculate the maximum price the managers would be willing

Calculate the maximum price the managers would be willing to pay for the robot-controlled forklifts. Assume the company's management

  Determine the project profitability index for each project

Compute the project profitability index for each project. (Round your answers to 2 decimal places.) Rank the projects in terms of preference

  Determine what costs from the list are relevant in decision

Determine What costs from the list are relevant in the decision between using the truck to make the delivery or have the transportation services outsourced

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