Humphrey Hotels’ operating income (EBIT) is P40 million. The company’s times interest earned (TIE) ratio is 8.0, its tax rate is 40 percent, and its basic earning power (BEP) ratio is 10 percent.  What is the company’s return on assets (ROA)?

Q: ENN Corporation has interest expense of P16,000, sales of P600,000, a tax rate of 30%, and after-tax…

A: Times interest earned ratio = Earnings before interest and tax/interest  expense  where, Earnings…

Q: Ozark Industries reported net income of $75 million in 2002. The company’s corporate tax rate was 40…

A: The sales level of a company directly affect the company's net income. In order to increase the net…

Q: MPI Incorporated has $6 billion in assets, and its tax rate is 35%. Its basic earningpower (BEP)…

A: Asset =6 billion Tax =35% Basic earnings power ratio =11% Return on Asset =6%

Q: Crystal Oil has $9 million in accounts payable, $1.8 million in salaries and taxes payable, and…

A: Payables deferral period of a company, is nothing but the average time period taken to pay the…

Q: AEI Incorporated has $5billion in assets, and its tax rate is 40%. Its basic earning power (BEP)…

A: Assets = $ 5 billion Tax rate (T) = 40% BEP ratio = 11% ROA = 10%

Q: What is Chipotle’s TIE

A: TIE of a company means Times Interest Ratio or interest cover ratio of a company. It evaluates a…

Q: Local Co. has sales of $10.9 million and cost of sales of $6.1 million. Its selling, general and…

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: The Grey Corporation has $12 billion in assets, and its tax rate is 40%. The company’s basic…

A: Basic earning power(BEP)= Earnings Before Interest & Taxes(EBIT) / Total Assets 15%= EBIT /…

Q: The Stevia Corporation has $5 billion in assets, and its tax rate 40%. The company’s basic earning…

A: The question is based on the concept of time-interest-earned (TIE) ratio, which is calculated as…

Q: graser trucking has $12 billion in assets, and its tax rate is 40%. its basic earning power (BEP)…

A: Earnings before interest and tax are $1.8 billion.   Interest expenses are $8 million…

Q: Thomson Trucking has $16 billion in assets, and its tax rate is 40%.Its basic earning power (BEP)…

A: The time's interest earned ratio is the ratio which shows the ability of the company to meet the…

Q: A firm has total interest charges of $10,000 per year, sates of $1 million, a tax rate of 40…

A: Times interest earned ratio or interest coverage ratio shows ability of the company in paying it's…

Q: Vapor Lock Motors’ EBIT is $7,000,000, the company’s interest expense is $2,000,000, and its tax…

A: DFL means how much the earnings of a firm change due to change in the debt-equity ratio of the firm.…

Q: The karson transport company currently has net operating income of $508,000 and pays interest…

A: times interest earned = net operating income/interest expense

Q: For 2018, Gourmet Kitchen Products reported $22.5 million of sales and $18 million of operating…

A: Economic value added (EVA) is a measure of a company's economic profit. It is the value created…

Q: A Company recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and…

A: Given: Sales $15,500 Operating Costs $8,250 Depreciation $1,750.  It had $9,000 of bonds outstanding…

Q: Peterson Packaging Corp. has $9 billion in total assets. The company's basic earning power (BEP)…

A: BEP ratio =9% Total assets =$9 billion  Time earned ratio =3

Q: Andre's Bakery has sales of $687,000 with costs of $492,000. Interest expense is $26,000 and…

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

Q: Russell Securities has $100 million in total assets and its corporate tax rate is 40 percent.  The…

A: Before we get into the question, let's understand the two ratios involved in the question:1. BEP =…

Q: The Moore Corporation has operating income (EBIT) of $750,000. The company’s depreciation expense is…

A: Net income is calculated by using the following formula: NI = (EBIT - Interest) * (1 - tax rate) Net…

Q: Local Co. has sales of $10.3 million and cost of sales of $6.1 million. Its selling, general and…

A: Answer -    Part A -  Given,  Sales = $10.30 million Cost of goods sold = $6.10 million   So, Gross…

Q: The H.R. Pickett Corp. has $500,000 of debt outstanding, and it pays an annual interest rate of 10%.…

A: The times earned interest ratio is comparing the earnings before interest and taxes to interest…

Q: In 2016, the Allen Corporation had sales of $69 million, total assets of $48 million, and total…

A: S&H Construction Company Tax 0.35 Sales $14,500,000 Interest Expenses $306,000…

Q: Byrgenwerth Corp has $55,000,000 of assets, and its tax rate is 28%. Its Basic Earning Power (BEP)…

A: A ratio that provides information about the company regarding the capability of payoff its debt…

Q: AEI Incorporated has $5 billion in assets, and its tax rate is 40%. Its basic earning power (BEP)…

A: The Times Interest earned ratio provides information as company is able to meet the interest cost…

Q: Carter Corporate has current assets of $120 million and inventory equal to $30 million. If Carter’s…

A: To calculate the current ratio we will use the below formula   Current ratio = Current…

Q: Barton Industries has operating income for the year of $3,500,000 and a 37% tax rate. Its total…

A: Economic Value Added (EVA) is a financial indicator that helps in determining the profitability of…

Q: Humphrey Hotels’ operating income (EBIT) is $40 million. The company’s times interest earned (TIE)…

A: Return on Assets is the ratio that shows the profitability of the assets of the company which means…

Q: Humphrey Hotels' operating income (EBIT) is $40 million. The company's times interest earned (TIE)…

A: Given:  EBIT  $40 million Times interest earned(TIE) 8 times Tax rate  40% Basic Earning…

Q: NUBD had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company's…

A: Given,  Degree of operating leverage = 5 Increase in sales = 15%

Q: Orono Corp.'s sales last year were $575,000, its operating costs were $362,500, and its interest…

A: As per formula Times interest earned (TIE) ratio = (Sales-Operating cost)/Interest expenses   Where…

Q: The firm had sales of $33 million, operating expenses of $14 million, interest of $4 million and…

A: Earnings before interest & taxes(EBIT) is the income generated by an entity before making…

Q: MPI Incorporated has $3 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: BEP ratio=EBITTotal Assets0.13=EBIT$3 billionEBIT=$3 billion×0.13EBIT=$0.39 billion   ROA=Net…

Q: A firm has total interest charges of $10,000 per year, sales of $1 million, a tax rate of 40…

A: Solution: The times interest earned ration is a measure to determine company's ability to meet its…

Q: Vhea Corp has an operating profit of P1,200 produced from P9,800 in sales. If Vhea has no interest…

A: Operating profit- This profit is obtained by the entity during its operating activities only. This…

Q: The following is Firm Y's current statement of comprehensive income. If the firm is currently…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: Sheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest…

A: Operating Cash Flow = EBIT + Depreciation - Taxes   EBIT = Sales - Cost - Depreciation - Interest

Q: Local Co. has sales of $10.9 million and cost of sales of $5.9 million. Its selling, general and…

A: Prepare the income statement by the given information as per the following matrix: The gross profit…

Q: times-interest-earned ratio

A: Times interest earned ratio = Earnings before interest and taxes/Interest expense

Q: MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: To determine times-interest-earned (TIE) ratio, following formula will be used:

Q: Easy Launch Box recently reported $15,500 of sales, $8,250 of operating costs other than…

A: In this question, we have been asked to find the operating income for which we have been given…

Q: Cecil, Inc. has sales of $682,100. Earnings before interest and taxes is equal to 20 percent of…

A: Profit margin: This ratio indicates the percentage of sales which converted into profit. It is…

Q: Blue Co. has a total liabilities of P400,000 on which 40% is a long-term liability. The non-current…

A: = Total liabilities - Long term liability = 400,000 - (40% * Total liabilities )     {Given} =…

Q: NUBD had 5 degrees of operating leverage when its profit before taxes was P200,000. If the company’s…

A: Solution: Profit before taxes will increase by = Increase in sales *  degrees of operating leverage…

Q: Holly Farms has sales of S509,600, costs of $448,150, depreciation expense of $36,100, and interest…

A: Here, Sales is $509,600 Costs is $448,150 Depreciation Expense is $36,100 Interest Paid is $12,400…