MPI Incorporated has $5 billion in assets, and its tax rate is 35%. Its basic earning power (BEP) ratio is 12%, and its return on assets (ROA) is 3%. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question What is MPI's times-interest-earned (TIE) ratio? Round your answer to two decimal places.

Q: Barts Industries, Inc., has total assets as follows: $50,000 in cash, $15,000 in short-term…

A: Solution..     Cash = $50,000  Short term investment = $15,000  Net receivable = $120,000  Inventory…

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: 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: Trevi Corporation recently reported an EBITDA of $32,800 and $9,500 of net income. The company has…

A: given, EBITDA =$32,800  net income= $9,500  interest expense= $6,700  corporate tax rate = 35 %

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: The newspaper reported last week that Bennington Enterprises earned $17 million this year. The…

A: Answer  Total Earning  = $17 millions  ROE = 14% Retainsation ratio = 70%

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

A: Interest expenses = $10,000 Sales = $1,000,000 Tax rate = 40% Net profit ratio = 6% Profit before…

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

A: Formula: TIE ratio=EBITInterest expense

Q: Barton Industries has operating income for the year of $3,100,000 and a 38% tax rate. Its total…

A: Given information: Operating income: $3,100,000 Tax : 38% Investment : $20,000,000 Cost of capital :…

Q: Calculate the target rate of return.​ (Round your answer to two decimal​ places.)

A: Target Rate of Return = Minimum Acceptable Operating income/Average Total Assets.

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: Last year, Hassan’s Madhatter, Inc. had an ROA of 9 percent, a profit margin of 14.70 percent, and…

A: ROA = Net income / Total assets = 9%Profit margin = Net income / Sales = 14.70%Sales = $ 30 million

Q: In 2016, the Allen corporation had sales of $67 million, total assets of $42 million, and total…

A: Sales = 67,000,000 Assets = 42,000,000 Liabilities = 19,000,000 Interest Rate = 6.3% Tax Rate = 35%…

Q: Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and…

A: The provided information are: ROA = 6% Profit margin = 12.80% Sales = $15 Million

Q: Vanderheiden Press Inc. and Herrenhouse PublishingCompany had the following balance sheets as of…

A: The Vanderheiden Press Inc. and Herrenhouse Publishing with the balance sheets as of December 31,…

Q: The Ashwood Company has a long-term debt ratio of .45 and a current ratio of 1.25. Current…

A: Long term debt ratio = long term debt/(long term debt+equity) = 0.45 Current ratio = current…

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

A: Profit Margin = Net Profit /Sales

Q: LMM Company’s total assets at the end of last year were P405,000 and its earnings before interest…

A: Total assets = P405,000 EBIT = P52,500

Q: For the most recent year, Camargo, Inc., had sales of $534,000, cost of goods sold of $241,680,…

A:

Q: In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and…

A: Times Interest Earned = Earnings Before Interest and Tax/ Interest Expense

Q: Bed Bug Inn has annual sales of $137,000. Earnings before interest and taxes are equal to 5.8…

A: We know that the formula to calculate the profit margin is  Profit Margin = (Net Income/Sales) * 100…

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: Russell Securities has $125 million in total assets and its corporate tax rate is 40%. The company…

A:

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: In 2016, Natural Selection, a nationwide computer dating service, had $532 million of assets and…

A: Principal and Interest = Interest payment+Principal payment/1-tax rate+Dividends/1-tax rate=…

Q: Chipotle has $2,500 million in assets, consisting of $1,055 million in debt, $1,445 million in…

A:

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: Gorilla Movers has sales of S645,560, cost of gods sold of SsA25,890, depreciation of $32,450, and…

A: The times interest earned ratio is calculated as ratio of earnings before interest and taxes and the…

Q: Dearborn Supplies has total sales of $206 ​million, assets of $94 ​million, a return on equity of…

A: Net income = Profit margin * Sales = 0.078 * $206 million = $16.068 million Equity = Net income /…

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: 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: In the past year, TVG had revenues of $2.93 million, cost of goods sold of $2.43 million, and…

A: Time interest earned ratio This give the ability of firm to pay interest on debt regularly. Time…

Q: Two Sisters Dresses has net working capital of $43,800, net fixed assets of $232,400, net income of…

A: Net working capital - $43,800 Net Fixed assets - $232,400 Net income - $43,900 Current liabilities -…

Q: Baker Industries’ net income is $24000, its interest expense is $6000, and its tax rate is 40%. Its…

A: Excel Spreadsheet: Excel Workings:

Q: For the most recent year Camargo Inc., had sales of $556,000, cost of goods sold $248960,…

A:

Q: What is the return on equity for each firm if the interest rate on current liabilities is 10% and…

A: Return on equity is a financial metric that helps in evaluating the profitability position of a…

Q: Red Company has a profit margin of 15 percent on sales of $20,000,000. If the firm has a debt of…

A: Solution:- The return on Total Assets ratio measures how much net income the company earns on its…

Q: The following year-end data pertain to Adan Corporation: Earnings before interest and taxes 800,000…

A: EBIT = 800,000 Current asset = 800,000 Non current asset = 3200,000 Current liability = 400,000…

Q: MPI Incorporated has $4 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…

A: EBIT = BEP ratio * Assets = 0.12 * $4 billion = $0.48 billion Net income = ROA * Assets = 0.03 * $4…

Q: Lone Star Plastics has the following data: Assets - $100,000; Interest rate - 8%; Debt ratio - 40%;…

A: Total asset turnover ratio = Net sales / Total assets 3 times = Net sales / $100,000 Net sales =…

Q: Griffin's Goat Farm, Inc., has sales of $665,000, costs of $327,000, depreciation expense of…

A: Net income: Net income of a firm is computed by subtracting the expenses from the net revenue or…

Q: Last year, Hassan's Madhatter, Inc. had an ROA of 6 percent, a profit margin of 12.80 percent, and…

A: Assets: These are the resources owned and controlled by business and used to produce benefits for…

Q: Last year, Roswin Robotics have $5,000,000.00 in operating income (EBIT). Its depreciation expense…

A: Net Operating Working Capital = Operating Current Assets - Operating Current Liabilities Net Working…

Q: In 2016, the Allen Corporation had sales of $62 million, total assets of $47 million, and total…

A: Given the following information: Sales: $62,000,000 Total assets: $47,000,000 Total liabilities:…

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…