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1 year ago

Ratios Analyzing Long-Term Firm Solvency

Business

1 answer:

Tpy6a [65]1 year ago

4 0

Answer:

0.57 and 9.24 times

Explanation:

The computation is shown below:

a. Debt to equity ratio

= Total Liabilities ÷ Share holders' equity

= $2,400,000 ÷ $4,200,000

= 0.57

And, the times interest earned ratio is

= EBIT ÷ interest expense

where,

EBIT is

= Net income + taxes + interest

= $496,500 + $203,500 + $85,000

= $785,000

And, the interest expense is $85,000

So, times interest earned ratio is

= $785,000 ÷ $85,000

= 9.24 times

We simply applied the above formulas

Plus the year is 2019 not 2016

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A company purchased a tract of land for its natural resources at a cost of $1,000,000. It expects to harvest 5,000,000 board fee

hram777 [196]

Answer:

The correct answer is $0.16.

Explanation:

According to the scenario, the given data are as follows:

Total cost = $1,000,000

Total units = 5,000,000

Salvage value = $200,000

So, we can calculate the depletion expense per board foot by using following formula:

Depletion expense = ( Total cost - Salvage value) ÷ Total Units

By putting the value, we get

Depletion expense = ( $1,000,000 - $200,000) ÷ 5,000,000

= $0.16

5 0

2 years ago

Which of the following is an example of a non-penalized religious observance?

tamaranim1 [39]

The correct answer would be option C.

Allowing employees to pray during work time.

Explanation:

Non penalized religious observance means, If someone practice his or her religion during the work hours, as it is compulsory in his/her religion to do so, at the place where he works.

So companies allow employees to pray during work hours which will be a non penalized religious observance for the employees.

For example, If there is a Muslim who works in an organization which is owned by the people of other religion, and if he offers his prayers during his work hours, then the company will respect his offerings and won't charge or penalize him on the observance of his religion during the office timings.

Learn more about Religious observance at:

brainly.com/question/2887557

#LearnWithBrainly

6 0

2 years ago

Wages paid to inspectors, factory accountants, and plant supervisors are classified as __________ __________, while wages paid t

Mademuasel [1]

Answer:

Indirect Labour Cost, Direct Labour Cost

Explanation:

Direct Labour Cost

This is the type of cost incurred or wages paid to workers or employees that directly works on project. For example, laborer, foreman, painters, machine operators, delivery man etc. all belongs to this category. They are wages paid to the category of employees or workers who physically produce products.

Indirect Labour Cost

These are wages paid to those group of workers or employees that perform tasks that do not directly contribute to the production of goods or performance of services. For example, we have accountants, security guards, administrative officers, supervisors, inspectors and so on. It is also known as Overhead cost. They are not involved in the active part of conversion of raw materials into products.

5 0

2 years ago

hich of the following is not a reason why government agencies subsidize basic research? a. The private market devotes too few re

Oxana [17]

Answer:

c. The government wants to attract the brightest researchers away from private research firms

Explanation:

Research is one of the activities that generates postive externality.

Positive externality is when the benefits of economic activities to third parties exceeds the costs.

Activities that generates postive are usually underproduced because of the high cost associated with it. In order to encourage production, the government usually grants subsidies.

I hope my answer helps you

4 0

2 years ago

Read 2 more answers

Sathre Corporation is an oil well service company that measures its output by the number of wells serviced. The company has prov

Andre45 [30]

Answer:

The "Employee salaries and wages" in the flexible budget for December is $85,200

Explanation:

To compute the employee salaries and wages in the flexible budget we have to use the formula which is given below:

= (Fixed element of employee salaries and wages) + (variable element of employee salaries and wages × number of wells service during the year)

= ($56,400) + ($900 × 32 wells)

= $56,400 + $28,800

= $85,200

Other information which is given in the question is irrelevant, thus it is not considered in the computation part.

Hence, The "Employee salaries and wages" in the flexible budget for December is $85,200

6 0

1 year ago