User Account

All Pages

What is morrit tie ratio

Assignment Help Financial Accounting
Reference no: EM132489387

Point 1: The Morrit Corporation has $570,000 of debt outstanding, and it pays an interest rate of 8% annually. Morrit's annual sales are $3 million, its average tax rate is 25%, and its net profit margin on sales is 3%. If the company does not maintain a TIE ratio of at least 3 to 1, then its bank will refuse to renew the loan, and bankruptcy will result.

Question 1: What is Morrit's TIE ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132489387

Questions Cloud

Elasticities of the demand and supply curves : How does the deadweight loss depend on the elasticities of the demand and supply curves? Explain.
Debate about the realism of economic assumptions : Two students debate about the realism of economic assumptions. Donald is an economics student and Boris is a sociology student.
Impact of social desiabiltiy on personality testing : Discuss the impact of social desiabiltiy on personality testing and the measures devised to overcome this problem
Suppose the government reduces the reserve requirement : Suppose the government reduces the reserve requirement. Briefly explain what happens to output and why.
What is morrit tie ratio : If the company does not maintain a TIE ratio of at least 3 to 1, then its bank will refuse to renew the loan, and bankruptcy will result. What is Morrit's TIE
Implemented to grow economies long term : What are some of the policies being implemented to grow these economies long term?
Perfectly competitive industry becomes a monopoly : Suppose that a perfectly competitive industry becomes a monopoly. What effect will this have on consumer surplus, producer surplus, and deadweight loss
What amount should alpha company record the equipment : Offered Alpha, $185,000 for this equipment. What amount should Alpha Company record the equipment purchase at if payment is made by July 11?
What conclusions about management of accounts receivable : What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average collection period.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd