Buying goods or services instead of producing or providing them in-house is called:

Sales are $1.44 million, cost of goods sold is $570,000, depreciation expense is $144,000, other operating expenses is $294,000,

anygoal [31]

Answer:

Times Interest earned ratio is 4.41 times

Explanation:

Times interest earned ratio measure the business capability to pay the interest over its liabilities from its current earning.

As interest expense value is not given it is calculated by the net of Earning before interest and tax and Income before tax

Net Income = Addition to Retained Earning + Dividend Paid = $133,100 + ( 84,000 x $1 ) = $133,100 + $84,000 = $217,100

Income before tax = $217,100 x 100% / ( 100% - 35%) = $334,000

Earning before interest and tax = Sales - Cost of goods sold - depreciation expense - other operating expenses = 1,440,000 - 570,000 - 144,000 - 294,000 = $432,000

Interest Expense = Earning before interest and tax - Income before tax = $432,000 - 334,000 = $98,000

Times Interest earned ratio = Earning before Interest and tax / Interest expense = $432,000 / $98000 = 4.41 time

4 0

1 year ago

Tatum can borrow at 6.7 percent. The company currently has no debt, and the cost of equity is 12.9 percent. The current value of

Zanzabum

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

4 0

1 year ago

Training activities are said to be outsourced when they are provided by ________. in-house consultants company managers individu

Mrrafil [7]

Answer: Consulting firms and government organizations

Explanation:

When external bodies; Consulting firms and any organization carry out a task in a firm, it is said that the particular job was outsourced for services to be provided by an external body.

6 0

2 years ago

Tektron Industries has Beginning and Ending Raw Materials Inventories of $32,000 and $40,000, respectively. Direct Materials use

ch4aika [34]

Answer:

$138,000

Explanation:

The computation of the cost of Raw Materials Purchased is shown below:

= Direct materials used + ending direct material inventory - beginning direct material inventory

= $130,000 + $40,000 - $32,000

= $138,000

Simply we added the ending direct material inventory and deduct the beginning direct material inventory to the direct material used so that the accurate amount can come

5 0

2 years ago

When business improved, Tasha Lind determined that the company had a talent shortage. Which of the following methods should she

Len [333]

Answer:

c. Outsource to a third party

Explanation:

At that time when business improved, Tasha Lind saw that the company is suffering with shortage of talent. From the given following methods she should use <u>outsource to a third party</u> for managing the shortage of talent because as outsource to a third party generally means that the company will give the contract of their work to any third party they wish. As company is suffering with shortage of talent, so the company will have to give contract to any other third party because company will not make its loss.

7 0

1 year ago