How is the times-interest-earned ratio calculated, and what does it evaluate?

Q: Which is the accounting rate of return using the average investment?

A: Summary of the relevant information as provided in the question : cost of investment =    £…

Q: How do you compute the receivables turnover ratio?

A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…

Q: What are the different ways to calculate the Financial ratios?

A: Financial ratios:   Financial ratios are the metrics used to evaluate the capabilities,…

Q: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

Q: Define Times interest earned ratio.

A: Accounting Ratios: A ratio is a number expressed in terms of anther. Ratios are used by…

Q: The times interest earned ratio is computed as: O interest expense times income before interest…

A: Times Interest earned ratio measures the company's ability to repay it's interest. So the net income…

Q: how to calculate and interpret basic financial statement ratios?

A: The question is based on the concept of Financial Accounting. Financial ratios are a mathematical…

Q: What are the financial ratios?

A: Financial ratios show the financial condition of the company. Following are types of financial…

Q: What is the difference of Cost of Equity and the required rate of return on equities?

A: The amount of money that would be transferred to a company's shareholders if all of the company's…

Q: how do you calculate the net income

A: Revenues: Revenues are earnings from operations of a business. The operating activities are sale of…

Q: The difference between gini coefficient of market income and gini coefficient of disposable income…

A: The difference between gini coefficient of market income and gini coefficient of disposable income…

Q: What is the Effect of Loan-to-Value Ratio on Loan Cost?

A: LTV ratio tells about the maximum loan approved in terms of the value of the collateral given.

Q: What is the basic equation underlying the income statement?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: what are contrast economic concepts of income from reported income?

A: As per the income statement, the reported income refers to the income left after subtracting the…

Q: What is the net income for the current year?

A: Net income refers to net result or net earnings or net profit of an enterprise which is calculated…

Q: What does the gross profit percentage measure, and how is it calculated?

A: Gross margin percentage: The percentage of gross profit generated by every dollar of net sales is…

Q: Which are the total interest expense in the income statement?

A: Interest expenses mean costs related to financing. It is also called finance costs. From the above…

Q: What does the debt to equity ratio shows, and how is it calculated?

A: Debt to equity ratio and its implication:The ratio of company’s total debt to the total…

Q: What are the steps involved in using trend percentages in financial analysis?

A: Financial analysis is the process or method that is used to evaluate the profitability and…

Q: What is the Fixed Charge Coverage Ratio? • What is the Earnings Yield Ratio?

A:

Q: How much is net income?

A: Financial statements are the set of records of the financial transactions and position of a business…

Q: How do you turn an income statement int a forecasted return? And how is it helpful?

A: Return means earn additional on invested amount. Return is a positive factor in every investment.…

Q: Discuss some financial variables that affect the price-earnings ratio?

A: The price-Earning Ratio refers to the ratio between earning per share and the current market price…

Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…

A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…

Q: how is profit or loss calculated on an income statement?

A: Profit and loss is calculated as below-

Q: What is income approach measurement?

A: Step 1 The income approach is a real estate valuation tool that determines fair market value based…

Q: How much was the profit before finance cost and income tax?

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: What is horizontal analysis, and how is a percentage change computed?

A: Financial statement analysis: Financial information of business is analyzed by the analysts,…

Q: How do you calculate the breakeven point in revenues?

A: Break-even point is the level at which profit is zero; that is, at the Break-even level, expenses…

Q: Net income calculated

A: Net income represents the income eared by the company that is presented in the income statement.

Q: What is the debt to total assets ratio?

A: Debt to Total asset Ratio: Debt to total asset ratio is the relationship between the Total…

Q: What is Pro forma (or projected) profit-and-loss statement?

A: Pro Forma financial  Statement (also called as pro forma profit and loss) means that however the…

Q: It is the net after tax ratio with sales revenues?

A: Sales revenue is the revenue which has been earned by the company for the selling of the products or…

Q: What is the tabular approach for finding the net income?

A: Net Income is the profit calculated after deducting all the expenses and paying off all the…

Q: What is liabilities-to-assets ratio?

A: Debt ratio is the percentage of a company's assets that are provided through debt. This can also be…

Q: What is the difference of net income and gross income?

A: The answer is provided as follows:

Q: How is times-interest-earned computed?

A: The times interest earned ratio is a measure of a company's ability to meet its debt obligations…

Q: How is gross profit calculated, and what does it represent?

A: Gross profit is the difference of amount obtained by subtracting Cost of goods sold from Net…

Q: Are debtors calculated at selling price or finished goods price? and why?

A: The word debtor comes from the word debt which means a company or an individual having a debt…

Q: What is annual investment income? And what effect it has on income statement and balance sheet

A: Annual investment income is a vital source of income for the business and is explained in the next…

Q: what is Income Projections

A: An income projection statement is a formal document prepared by finance or accounting officers…

Q: What Is the term Actual-Dollar Analysis?

A: Dollar analysis is referred as the analysis of dollars by businesses and companies to compare the…

Q: What is the formula used to get the answers in interest expense and net income?

A: The interest expense is the amount a borrower has to pay against the amount borrowed. It is…