Question: During the current year Sevcik Company had pretax income from
During the current year, Sevcik Company had pretax income from continuing operations of $19,200, which included interest expense of $4,000. At the end of the year, Sevcik Company had total assets of $119,000 and total liabilities of $41,700. Compute the debt ratio and interest coverage ratio of Sevcik Company for the current year.
Answer to relevant QuestionsThe following accounts are taken from the December 31, 2010 adjusted trial balance of the Reed Company:Cost of goods sold ......... $121,120Interest expense ........... 4,880Depreciation expense ........ ...On January 1, 2010, Charles Jamison borrows $40,000 from his father to open a business.The son is the beneficiary of a trust created by his favorite aunt from which he will receive $25,000 on January 1, 2020. He signs an ...Discuss the classification options for accounts receivable under IFRS.Refer to RE7-6. On April 23, Year 2, McKinney & Co. receives a check from Mangold Corporation for $8,500.Prepare the journal entry for McKinney & Co. to record the collection of the account previously written off.In RE7-6, ...On December 11, 2010, the Hooper Bank loans a customer $12,000 on a 60-day, 12% note.RequiredPrepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2010, ...
Post your question