In the past year Pharoah Corporation had net income of $209000, interest expense of $55000, and tax expense of $89000. During the current year, Pharoah refinanced their debt so interest expense is now $38000. Net Income is expected to be $247000 and the tax expense is expected to be $102600. What is Pharoah Corporation's times interest earned after the changes? O 10.20 O241 0753 06.50

In the past year Pharoah Corporation had net income of $209000, interest expense of $55000, and tax expense of $89000. During the current year, Pharoah refinanced their debt so interest expense is now $38000. Net Income is expected to be $247000 and the tax expense is expected to be $102600. What is Pharoah Corporation's times interest earned after the changes? O 10.20 O241 0753 06.50

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

See similar textbooks

Similar questions

Shenron, Inc. had pre-tax accounting income of P1,350,000 and a tax rate of 40% in 2020, its first year of operations. During 2020 the company had the following transactions: Received rent from Master, Co. for 2021 P48,000 Municipal bond income P60,000 Depreciation for tax purposes in excess of book depreciation P30,000 Installment sales revenue to be collected in 2021 P81,000 For 2020 what is the amount of income taxes payable for Shenron, Inc? a. P579,600 b. P452,400 c. P514,800 d. P490,800
In a recent year, Cullumber Corporation had net income of $746000, interest expense of $146000, and a times interest earned ratio of 9. What was Cullumber Corporation's income before taxes for the year? Select answer from the options below $1168000 $943111 $1460000 $1314000
The Malia Corporation had sales in 2019 of $65 million, total asswets of $42 million, and total liabilities of $20 million. The interest rate on th company's debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company's operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
In a recent year Crane Corporation had net income of $140000, interest expense of $30000, and tax expense of $13000. What was Crane Corporation’s times interest earned for the year?
The Malia Corporation had sales in 2019 of $65 million, total assets of $42 million, and total liabilities of $20 million. The interest rate on the company’s debt is 6 percent and its tax rate is 21 percent. The operating profit margin was 12 percent. What were the company’s operating profits and net income? What was the operating return on assets and return on equity? Assume that interest must be paid on all of the debt.
Lawn.com is expected to have operating losses of $329,300 in its first year of business and $293,400 in its second year. However, the company expects to have income before taxes of $374,400 in its third year and $589,300 in its fourth year. The company's required rate of return is 10 percent. Assume a tax rate of 35 percent and that current losses can be used to offset taxable income in future years. Click here to view factor tables What is the present value of tax savings related to the operating losses in years 1 and 2? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to O decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Present value $ +A 189641
Byron Books Inc. recently reported $15 million of net income. Its EBIT was $31.2 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $15 million of net income by (1 T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) 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. Do not round intermediate calculations. $
ZYX Inc has average gross receipts of $40 million per year over the last several years. In the current year, ZYX has $2,000,000 of taxable income before considering interest.ZYX has $150,000 of business interest income, S1, 200,000 of interest expense, and no floor plan financing. How much interest expense can ZYX deduct?
A corporation has $50 billion of Earnings Before Interest and Taxes (EBIT) and $20 billion in interest expenses this year. How much interest expense can the company deduct from its EBIT in the current year? What happens if the company can’t deduct all of its interest expenses in the current year?
GHI Company expects to earn P10,000 pre-tax profit in each of the 1st and 2nd quarters of the year and P15,000 pre-tax profit in each of the last two quarters. The tax rate as of the beginning of the year is 20%. However, following a newly enacted tax legislation, the tax rate will be increased to 30% which shall take effect beginning on the last quarter of the year. Actual earnings match expectations. Compute for income tax expense for the 2nd quarter of the year.
In its first year of operations, Seagate Tech reported pretax accounting income of $780 million for the current year. Depreciation reported in the tax return in excess of depreciation in the income statement was $900 million. The excess tax will reverse itself evenly over the next three years. The current year's tax rate of 25% will be reduced under the current law to 30% next year and 35% for all subsequent years. At the end of the current year, the deferred tax liability related to the excess depreciation will be: Multiple Choice $315 million. $300 million. $270 million. $360 million.
Oriole, Inc. had pre-tax accounting income of $3000000 and a tax rate of 20% in 2025, its first year of operations. In 2025, the company had the following transactions: Received rent from Sandra, Co. for 2026 $99000 Municipal bond income 123000 Depreciation for tax purposes in excess of book depreciation 63000 Installment sales profit to be taxed in 2026 165000 What is the amount of income taxes payable for Oriole for 2025? O $549600 $640800 $510000 O $574200