question 109
Multiple Choice
TEW COMPANY
Balarce Sheet
As of Decermber 31
ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets LIABIlTES AND STOCKHOLDERS’ EQUTYY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders’ equity $20,00080,00050,000250,000$400,000$40,00060,000130,000100,00010,00060,000$400,000
TEW COMPANY
Income Statement
For the year ended Decernber 31
Sales (all on credit) Cost of goods soldGross profit Sales and administrative expenses Fixed lease expenses Depreciation Operating profitInterest expense Profit before taxes Taxes (30%) Net income$500,000200,000$300,00020,00010,00040,000$230,00020,000$210,00073,500$136,500
Refer to the tables above. Times interest earned for Tew Company is ________.
Definitions:
Firms Locate
The process by which businesses decide where to establish their operations, influenced by factors such as market access, costs, regulations, and infrastructure.
Capital
Capital in a business context represents the financial assets needed for operations, such as funds in bank accounts, inventory, buildings, and machinery.
Growth Strategy
A plan devised by a business to increase its size and market share through measures such as market penetration, product expansion, and acquisitions.
Global Competition
The situation where businesses compete with others around the world for market share, resources, and talent, driving innovation and efficiency.