Compute the times interest earned for Park Company, which reports income before interest expense and income taxes of $1,885,000, and interest expense of $145,000. Interpret its times interest earned (assume that its competitors average a times interest earned of 4.0).
Answer to relevant QuestionsThe payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay period ending September 30, 2013. Gottschalk is single and claims one allowance. Compute her ...Keesha Co. borrows $ 200,000 cash on November 1, 2013, by signing a 90-day, 9% note with a face value of $ 200,000. 1. On what date does this note mature? (Assume that February of 2013 has 28 days.) 2. How much interest ...Lenny Florita, an unmarried employee, works 48 hours in the week ended January 12. His pay rate is $14 per hour, and his wages are subject to no deductions other than FICA—Social Security, FICA—Medicare, and federal ...On October 29, 2012, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a ...Refer to the financial statements of Polaris in Appendix A to answer the following. 1. Compute times interest earned for the fiscal years ended 2011, 2010, and 2009. Comment on Polaris’ ability to cover its interest ...
Post your question