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Inessa [10]
2 years ago
14

A firm has sales of $215,600, costs of $124,800, interest paid of $3,600, and depreciation of $11,400. the tax rate is 34 percen

t. what is the value of the cash coverage ratio?
Business
1 answer:
Tju [1.3M]2 years ago
6 0

Cash Coverage ratio indicates if a firm has enough cash to pay of its interest expenses. The ideal ratio to be maintained by a firm is 1:1. This can be given by the following formula:

Cash Coverage Ratio=\frac{Earnings before Interest and Tax+Depreciation }{Interest Expense}

Cash Coverage Ratio=\frac{215600-124800+11400}{3600}

Cash Coverage Ratio=28.38

Assumption: Cost includes Depreciation, thus depreciation is added back, To find Cash Profits before Interest and Taxes.


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Behavior modification depends upon what principle?
Zanzabum
The appropriate response is operant conditioning. Operant conditioning is a kind of realizing where conduct is controlled by outcomes. Enter ideas in operant molding are uplifting feedback, negative support, positive discipline and negative discipline.
8 0
2 years ago
Usually, the decision to notify parties outside the client’s organization regarding noncompliance with laws and regulations is t
Daniel [21]

Answer:

Management

Explanation:

Sometimes in the course of discharging his duties, an auditor might discover a case of non-compliance with laws and regulations. In such situations, he is expected to report the issue to the governing body or management of the organization who in turn notify parties outside the client's organization. This might imply reporting to the appropriate law enforcement agencies who now investigate the matter.

The auditor should ensure that he is keeping to the code of confidentiality before proceeding on such a case. The management is expected to review the report to determine if the action was indeed non-compliant with the laws before proceeding on the next call of action.

6 0
2 years ago
If a firm has high current and quick ratios, this always is a good indication that a firm is managing its liquidity position wel
ohaa [14]

Answer:

True

Explanation:

Current and Quick ratio shows the liquidity position of the company. It shows that how much assets are available to company to pay off its liabilities if it becomes due in short period of time. High current and quick ratio make the company strong and it will have enough asset to deal with its obligation than with low current and quick ratio.

4 0
2 years ago
The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: Total North South
gizmo_the_mogwai [7]

Answer:

The correct answer is C that is $(140,000)

Explanation:

Elimination of the North Division will result in the overall net income or loss which is computed as:

Elimination of the North Division will result in the overall net income or loss = South Net Income (NI) - North's allocated costs

where

South Net Income is $100,000

North's allocated costs is $240,000

So,

= $100,000 - $240,000

= $(140,000)

Therefore, it will result in loss of $140,000

Note: The Net Income will be decline or decrease by $240,000 when the division was dropped.

4 0
2 years ago
The following Office Supplies account information is available for Nabors Company. Beginning balance ​$2,000 Office Supplies exp
Pachacha [2.7K]

Answer:

$7,000

Explanation:

Data provided in the question:

Beginning balance = ​$2,000

Office Supplies expenses = ​$8,000

Ending balance = $​1,000

Now,

Let the amount of office supplies purchased be 'x'

Therefore,

Ending balance = ​Beginning balance + Purchases - Office Supplies expenses

or

$1,000 = $2,000 + x - $8,000

or

$1,000 = - $6,000 + x

or

x = $7,000

7 0
2 years ago
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