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The following table is used for calculations: Balance Sheet Assets Cash $150,000 Accounts receivable 400,000 Inventory 600,000 Net fixed assets $1,800,000 Liabilities and owners equity
The following table is used for calculations:
- Balance Sheet Assets
- Cash $150,000
- Accounts receivable 400,000
- Inventory 600,000
- Net fixed assets $1,800,000
- Liabilities and owners equity
- Accounts payable $150,000
- Notes payable 150,000
- Long-term debt 1,200,000
- Owners equity 1,500,000
- Income statement
- Sales (all credit) $6,000,000
- Cost of goods sold 3,000,000
- Operating expenses 750,000
- Interest expense 750,000
- Income taxes 750,000
- Net income 750,000
Based on the information in the table, the times-interest-earned-ratio is:
Question options:
| 53 times |
| 3 times |
| 4 times |
| 2 times |
The following table is used for calculations:
- Balance Sheet Assets
- Cash $150,000
- Accounts receivable 400,000
- Inventory 600,000
- Net fixed assets $1,800,000
- Liabilities and owners equity
- Accounts payable $150,000
- Notes payable 150,000
- Long-term debt 1,200,000
- Owners equity 1,500,000
- Income statement
- Sales (all credit) $6,000,000
- Cost of goods sold 3,000,000
- Operating expenses 750,000
- Interest expense 750,000
- Income taxes 750,000
- Net income 750,000
Based on the information in the table 1, the return on total assets is:
Question options:
| 12% |
| 25% |
| 10% |
| 24% |
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