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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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An annuity with an infinite life is called​ a(n) ________. A. perpetuity B. deep discount C. primia D. option
Tasya [4]

Answer:

The correct answer is letter "A": perpetuity.

Explanation:

Annuities are regularly-provided income hired through insurance. Those payments can be provided within a short or long period of time until an undetermined date. That is the reason why annuities are also called perpetuities. Annuities are taxed at regular income tax rates.

3 0
2 years ago
Merck, a pharmaceutical company, has taken thousands of drugs through the federal approval process and so can do it more cost ef
melomori [17]

Answer:

learning effects

Explanation:

Learning effects: In economics, the term "learning effects" is described as the process through which specific education is considered as increasing productivity and therefore results in producing higher wages. It gives an insight to the company to develop some competitive advantage by decreasing some of the production costs. However, the employees are focused on working more efficiently, decrease in the number of wastes and defects on several products.

In the question above, the given statement signifies the leaning effects.  

4 0
2 years ago
Gerald is very good with customers, is friendly, and works well with a team. Which career is Gerald most likely a part of? Nucle
iogann1982 [59]

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Gas Pumping Stattion

Explanation:

I think this is the answer.....

Hope this helps lmo

3 0
2 years ago
Read 2 more answers
Which currency is normally used for conducting global trade between two countries? currency of the seller
Kryger [21]

Often times the currency used is the currency of the seller.

7 0
1 year ago
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Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she h
Temka [501]
State tax is 5%, so 0,05
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Federal tax is 25% so 0,25
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Total of taxes to pay =1000+200=1200$

So the real profit will be
4000-1200=3800$

The real value of Annie's profit is 3800$



8 0
1 year ago
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