What is national current times interest earned ratio

Assignment Help Accounting Basics
Reference no: EM133106700

Question - ABC Company's net income last year was P65,000 and its interest expense was P15,000. Total assets at the beginning of the year were P630,000 and total assets at the end of the year were P650,000. The company's income tax rate was 25%. The company's return on total assets (based on adjusted net income) for the year was closest to?

ABC Corporation has P850,000 of debt outstanding, and it pays an interest rate of 10 percent annually on its bank loan. ABC's annual sales are P3,200,000, its average tax rate is 40 percent, and its net profit margin on sales (Net income after tax) is 6 percent.  If the company does not maintain a Times Interest Earned ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. What is National's current Times Interest Earned ratio?

Reference no: EM133106700

Questions Cloud

What was the acquisition cost of equipment : The depreciation applicable to this equipment was P240,000 for 2020 computed under the sum of years' digit method. What was the acquisition cost of equipment
7HR011 Managing Human Resources Assignment : 7HR011 Managing Human Resources Assignment Help and Solution, University of Wolverhampton - Assessment Writing Service
Identify and prioritize the key financial risks : Distinguish between different kinds of risk and the steps involved in the financial risk management process and discuss the main financial risk management tools
Determine the amounts of other comprehensive income : Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $34,800
What is national current times interest earned ratio : ABC Corporation has P850,000 of debt outstanding, and it pays an interest rate of 10 percent annually. What is National current Times Interest Earned ratio
Design a plan for couple to try to achieve goals : Design a plan for this couple to try to achieve their goals and objectives - A recently married couple just graduated from post-secondary education
What the company return on total assets : National Company's net income last year was P65,000 and its interest expense was P15,000. What the company return on total assets
What the plants will be reported as assets : The Marigold Corp. has five plants nationwide that cost $235 million. The current fair value of the plants is $390 million. What the plants will be reported
What is the amount of the disbursement float : Back Woods Lodges has a book balance of $1,680, $1,470 in uncollected deposits, and $2,130 in outstanding cheques. What is the amount of the disbursement float

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make a classified balance sheet

The company entered into the following transactions during the year. Make a classified balance sheet. Jan. 31 Collected $3,000 from customers on account

  What is unrealized profit in inventory

What is unrealized profit in inventory? Explain why the group must eliminate unrealized profit in inventory

  How many deliveries will be made during each time period

Digital Goods is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. How many deliveries will be made during each time

  What is the minimum amount that bell creditors would receive

If the assets can be sold for $260,000, what is the minimum amount that Bell's creditors would receive

  Write a review paper about the given article

Write a review paper about the article "Towards a Positive Theory of the Determination of Accounting Standards".

  What decision should made based on minimax regret criterion

What decision should be made based on minimax regret criterion? How many units should Andre order each time? Which of the following is true for this situation?

  Calculate the residual income of lakeside hospital

Question 1 - Evaluating Investment Centers with Residual Income, Required - Calculate the residual income/EVA of Lakeside Hospital

  What is the return on equity

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?

  What is the ars

What is the difference between owners; equity accounts representing shareholders; claims as equitv holders versus shareholders; interests as owners.

  Retrieve the samps in-chapter database in microsoft access

retrieve the samps in-chapter database in microsoft access format from the texts web site or create the tables in table

  A firm is considering several policy changes to increase

a firm is considering several policy changes to increase sales. it will increase the variety of gods it keeps in

  What is the total amount of the increased to Patents

Crane paid $78000 for legal fees in a successful defense of the patent. What is the total amount of the increased to Patents through July 31, 2017

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