Cristo Company reported net income of ($50,000) after subtracting ($10,000) for interest expense and ($20,000) for taxes.

Question:

Cristo Company reported net income of $$50,000$ after subtracting $$10,000$ for interest expense and $$20,000$ for taxes. Compute the company's times-interest-earned ratio:

a. 2.5

b. 5

c. 8

d. 3

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting For Undergraduates

ISBN: 9781618533081

4th Edition

Authors: Wallace

See More Books

Question Posted: May 17, 2024 09:01 AM

See More Questions

Construct a scatterplot with the following data. Categorize the relationship between x and y. 5 5 7 10 2 3
You are developing a simple calculator application for a futuristic handheld device. The calculator uses a unique postfix notation where each operator follows its operands, and the user enters...
Carol Harris, Ph.D, CPA, is a single taxpayer and she lives at 674 Yankee Street, Durham, NC 27409. Her Social Security number is 793-52-4335. Carol is an Associate Professor of Accounting at a local...
For Wilder Corporation, sales is $1,600,000 (8,000 units), fixed expenses are $480,000, and the contribution margin per unit is $80. What is the margin of safety in dollars?
Explain why you cannot directly adapt the proof that there are infinitely many primes (Theorem 3 in Section 4.3) to show that are infinitely many primes in the arithmetic progression 4k + 1, k = 1,...
One rationale for imposing taxes on alcohol consumption is that people who drink alcohol impose negative spillovers on the rest of societyfor example through loud and unruly behavior or intoxicated...
What are the primary characteristics of a bond? What distinguishes it from capital stock?
On May 1, Arnie Watson sent a memo to his boss, the director of project management, stating that the MX project would require thirteen weeks for completion according to the figure shown at the top of...
A test that determines if the original issue discount (OID) rules apply is the: 1) time value of money test 2) adequacy of interest test 3) risk-return test 4) (1) and (2) 5) (2) and (3)
A firm, using the allowance method of recording credit losses, wrote off a customer's account in the amount of $\$ 500$. Later, the customer paid the account. The firm reinstated the account by...
Apolo Company reported year-end current assets of $$75,000$ and current liabilities of $$25,000.$ The company's current ratio is: a. 1/3 b. 3 c. 4 d. $$50,000$
Charlotte had a salary of $41,500 during the first year of a new job and a salary of $42,745 during the second year. Determine the percent increase in Charlottes salary from the first year to the...
How has your perspective or understanding of organizational behavior been changed, challenged, reinforced, or deepened ? Explain
How canthe Internl Respnsibilitilty systm be incorporated in day to day activitiesof workers?
How can organizational learning be leveraged as a strategic asset to anticipate and adapt to disruptive changes in the external environment, thereby enabling long-term resilience and sustainability?
How can organizations proactively address systemic inequalities and structural barriers that perpetuate disparities in access to career advancement, mentorship, and leadership opportunities?
How do power differentials and social hierarchies manifest within team dynamics, and what implications do they have on decision-making processes?
A rotating disc (Fig. 1.6) moves in the positive direction of the x axis. Find the equation y (x) describing the position of the instantaneous axis of rotation, if at the initial moment the axis C of...
Repeat Exercise 16.6 using the t-test of the coefficient of correlation. Is this result identical to the one you produced in Exercise 16.6?
Diversification for a portfolio consisiting of two assets is more effective when a) the securities returns move in opposite directions b) the securities returns are not correlated c) the securities...
d) A university student painter is considering the purchase of a paint sprayer to replace an old one. The new paint sprayer costs $12,000 and has a useful life of four years, at which time it can be...
4. If the duration Gap for Coolmore Farms is 6.7, the required return is 5.8%, rates are expected to rise by 9 basis points, and the market value of assets is currently $1,800,000 then what is the...

Cristo Company reported net income of ($50,000) after subtracting ($10,000) for interest expense and ($20,000) for taxes.

Question:

Step by Step Answer:

Financial Accounting For Undergraduates

Students also viewed these Business questions