Pop Evil, Inc.'s, net income for the most recent year was $10,131. The tax rate was...

Pop Evil, Inc.'s, net income for the most recent year was $10,131. The tax rate was 24 percent. The firm paid $3,490 in total interest expense and deducted $2,101 in depreciation expense. What was the cash coverage ratio for the year?

Expert Solution

(EBIT-interest expense)(1-tax rate)=Net income

(EBIT-3490)(1-0.24)=10,131

(EBIT-3490)=10,131/0.76

EBIT=(10,131/0.76)+3490

=$16820.2632

Cash coverage ratio=(EBIT+depreciation)/interest expense

=(16820.2632+2101)/3490

=5.42(Approx)

jeff jeffy answered 2 years ago

Ugh Inc.’s net income for the most recent year was $15,685. The tax rate was 35...

Ugh Inc.’s net income for the most recent year was $15,685. The tax rate was 35 percent. The firm paid $3,856 in total interest expense and deducted $2,535 in depreciation expense. What was the cash coverage ratio for the year?

Terrell, Inc.’s net income for the most recent year was $13,350. The tax rate was 21...

Terrell, Inc.’s net income for the most recent year was $13,350. The tax rate was 21 percent. The firm paid $3,490 in total interest expense and deducted $4,340 in depreciation expense. What was the company’s cash coverage ratio for the year?

Delectable Parsnip, Inc.’s, net income for the most recent year was $15,221. The tax rate was...

Delectable Parsnip, Inc.’s, net income for the most recent year was $15,221. The tax rate was 23 percent. The firm paid $5,010 in total interest expense and deducted $5,447 in depreciation expense. What was the company’s cash coverage ratio for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Evil Pop Co. began the year with net fixed assets of $17,708 and had $19,121 in...

Evil Pop Co. began the year with net fixed assets of $17,708 and had $19,121 in the account at the end of the year. During the year, the company paid $4,438 in interest and expensed $3,940 in depreciation. The company purchased $9,380 in fixed assets during the year. How much in fixed assets did the company sell during the year? Please explain how you got it and not just the answer. I need help with the concept. Taking an online...

15) ABC Inc. has a net income of $1,000. The tax rate is 21% and the...

15) ABC Inc. has a net income of $1,000. The tax rate is 21% and the firm made an interest payment of $250 during the year. The depreciation for the year was $200. During the year, the net fixed assets increased by $500. Cash increased by $50, inventories decreased by $75, receivables increased by $100, payables declined by $125, and the short term debt for the company increased by 150. The firm saw its common stock and paid in surplus...

7) In its most recent financial statements, Nessler Inc. reported $75 million of net income and...

7) In its most recent financial statements, Nessler Inc. reported $75 million of net income and $1,275 million of retained earnings. The previous retained earnings were $1,211 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $

In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,120...

In its most recent financial statements, Nessler Inc. reported $80 million of net income and $1,120 million of retained earnings. The previous retained earnings were $1,098 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $

In its most recent financial statements, Nessler Inc. reported $60 million of net income and $840...

In its most recent financial statements, Nessler Inc. reported $60 million of net income and $840 million of retained earnings. The previous retained earnings were $798 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

S&J Plumbing, Inc.'s 2010 income statement shows a net profit before tax of $468, whereas the...

S&J Plumbing, Inc.'s 2010 income statement shows a net profit before tax of $468, whereas the balance sheet that the company's equity for the fiscal year-end 2010 is $1,746. Calculate the company's return on equity and explain whether the managers are providing a good return on the capital provided by the company’s shareholders. Diagram and explain the operating cycle of a service company.

1.Southlawn Inc.'s taxable income is computed as follows: Book income before tax $ 2,405,600 Net permanent...

1.Southlawn Inc.'s taxable income is computed as follows: Book income before tax $ 2,405,600 Net permanent differences (512,000 ) Net temporary differences (189,000 ) Taxable income $ 1,704,600 Using a 34% rate, compute Southlawn's tax expense per books and tax payable. a.Tax expense per books $643,824; tax payable $579,564. b.Tax expense per books $579,564; tax payable $643,824. c.Tax expense per books $817,904; tax payable $579,564. d.None of the choices are correct. 2.Monro Inc. uses the accrual method of accounting. Here...

Question