Q) A company has the following information for the current financial year: Gross profit $530,000 Operating...
Q) A company has the following information for the current financial year:
Gross profit $530,000 Operating profit $365,000 Profit after tax 287,000 Retained earnings for the year $195,000 Interest expense $26,000 Tax expense $52,000 Calculate the times-interest-earned ratio for the company.
Choose from below answers:
A1) 14.04.
A2) 7.50.
A3) 11.04.
A4)20.38.
Homework Answers
The correct answer is A1 ) 14.04
Note :
The times-interest-earned ratio = Operating profit / Interest Expense
= $ 365,000 / $ 26,000
= 14.04
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Q) A company has the following information for the current
financial year:
Gross profit $530,000 Operating...
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Cannot be calculated with the information provided
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Calculate gross profit margin (gross profit/revenues) and
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Golf Company (refer to Exhibit 2.9).
Multiple Choice
44.2% and 5.1%
50.2% and 5.1%
Cannot be calculated with the information provided
44.2% and 8.3%
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