tial analysis should include the following: The ratio equation The calculation of the ratio using the equation with the financial data from the two assigned companies. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result o
tial analysis should include the following: The ratio equation The calculation of the ratio using the equation with the financial data from the two assigned companies. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result o
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 8P
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The initial analysis should include the following:
- The ratio equation
- The calculation of the ratio using the equation with the financial data from the two assigned companies.
- Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
- Then explain whether this is a good result or a result that needs improving.
- The original post should include at least three (3) sentences but no more than seven (7) sentences.
![Page 422
QS 11-12 Times interest earned A10
Park Company reports interest expense of $145,000 and income before interest expense and income taxes
of $1,885,000. (1) Compute its times interest earned. (2) Park's competitor's times interest earned is 4.0. Is
Park in a better or worse position than its competitor to make interest payments if the economy turns bad?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F66ce93dd-c1a4-4c8a-9e49-9bb2d42d61dc%2Fq7q925g_processed.png&w=3840&q=75)
Transcribed Image Text:Page 422
QS 11-12 Times interest earned A10
Park Company reports interest expense of $145,000 and income before interest expense and income taxes
of $1,885,000. (1) Compute its times interest earned. (2) Park's competitor's times interest earned is 4.0. Is
Park in a better or worse position than its competitor to make interest payments if the economy turns bad?
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