Howser,Inc

question 71

Essay

Howser,Inc.reports operating income of $250,000 and interest expense of $20,000.The average number of shares of common stock outstanding during the year was 50,000 shares.The beginning assets balance is $90,000 and ending assets balance is $110,000.What is the times-interest-earned ratio? (Round your final answer to two decimal places. )

Comprehend the concept and significance of cash balances and how they vary among different firms and industries.

Grasp the basics and assumptions of the EOQ model for inventory management.

Recognize the role and impact of accounts receivable management on a firm's cash flows and profitability.

Understand the objectives of holding marketable securities and their role in liquidity management.

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Definitions:

Held-To-Maturity

Held-to-maturity describes investment assets that a firm plans and is capable of retaining until they reach their due date.

Security Categories

Security categories classify financial instruments based on their characteristics, such as equities, debts, derivatives, or hybrid instruments.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, taking into account factors such as depreciation, amortization, and impairment.

Fair Value

An estimate of the market value of an asset or liability, based on the price at which participants would willingly transact in an orderly transaction.