Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the financial statements of snapit company are giv

The financial statements of Snapit Company are given below. Snapit Company Income Statement...

70.2K

Verified Solution

Question

Accounting

The financial statements of Snapit Company are given below.
Snapit Company Income Statement (2009)
Sales $ 4,000,000
Cost of goods sold 3,040,000
Gross profit 960,000
Selling & administrative expenses 430,000
Operating profit 530,000
Interest expense 160,000
Income before tax 370,000
Tax expense 148,000
Net income $ 222,000
Balance Sheet 20092008
Cash $ 60,000 $ 50,000
Accounts receivable 550,000500,000
Inventory 690,000620,000
Total current assets $ 1,300,000 $ 1,170,000
Fixed assets 1,300,0001,230,000
Total assets $ 2,600,000 $ 2,400,000
Accounts Payable $ 270,000 $ 250,000
Bank loan 580,000500,000
Total current liabilities $ 850,000 $ 750,000
Bond payable 900,0001,000,000
Total liabilities $ 1,750,000 $ 1,750,000
Common stock (130,000 shares) $ 250,000 $ 250,000
Retained earnings 600,000400,000
Total liabilities & equity $ 2,600,000 $ 2,400,000
Note: The common shares are trading in the stock market for $100 each.
Refer to the financial statements of Snapit Company. The firm's times interest earned ratio for 2009 is:
Multiple Choice
3.31.
3.84.
2.26.
None of the options are correct.
3.16.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Maricopa's Success scholarship fund receives a gift of $165,000. The money is invested in stocks, bonds,...

Basic Math
Q

Part I – The Tour You are an intern working in the Atlanta, GA office of...

Medical Sciences
Q

G is solvable if and only if G/Z(G) is solvable

Advance Math
Q

An ex-employee of a company’s payable department was able to steal around $200K by filling fake...

General Management
Q

If f x 2x 1 and g x x Find g f 3 049 19...

Algebra
Q

QUESTION 4 Ben Hindi Products, Inc. developed standard costs for direct...

Accounting
Q

Discuss several factors affecting (negatively or positively) the achievement of systems development objectives.

Accounting
Q

Which of the following is not Section 1245 property? Intangible...

Accounting
Q

The Cash Payback Method: Select one: A. Is preferable to the Net Present Value method...

Accounting
Q

A company has overallocated manufacturing overhead by? $2,100. The entry to close manufacturing overhead account...

Accounting
Q

Keesha Company borrows $105,000 cash on December 1 of the current year by signing a...

Accounting
Q

7 8. What is the difference between Gross Pay and Net Pay? 3 Which amount...

Accounting