In the _____ stage of the relationship development process, the owner of several retirement centers has agreed that Fashion Seal Uniforms will be the only supplier of uniforms for her employees. Andy, the salesperson for Fashion Seal, has agreed to make some modifications in the uniforms to suit the needs of the retirement center personnel. Both parties view this as a long-term relationship built on mutual trust.

Answer:

False.

Explanation:

Soceital marketing is the concept that marketing should not only consider the consumer's need for satisfaction and the companie's goal of maximising profit, but also societie's long term goals.

Soceital marketing is concerned with companies identifying the wants and needs of particular target maket, and providing products in such a way that the target market is satisfied. The well-being of the consumer and society at large is enhanced.

Answer:

The question is not complete.As it is the practice cash flows  statement is usually prepared from income statement and statement of financial position(balance sheet)

Find in the attached excel file the income statement and the balance sheet that complements the question as well as the requirement to prepare a cash flow statement

Explanation:

Note the closing cash and cash equivalents is $206m which equals the cash and cash equivalents on the balance sheet.

Answer:

The correct answer is letter "C": Partnership.

Explanation:

A Partnership is an organization where two or more owners operate a business. They share the profits in proportion to their percentage partnership interest. There are two types of partnerships: General Partnerships (unlimited liability) and Limited partnerships (liability proportional to the percentage contribution of the partnership).

Answer: The answer is b

Explanation:

Since 60minutes = 1 hour

2400 ÷ 60

= 40

The total output of cars increased by 40

The law of comparative advantage states that a country will specialise in producing commodities in which the country has greatest comparative advantage. Therefore a country will produce for export those commodities she can produce cheaply than other countries.

Final answer:

This economic question explores the concept of comparative advantage in the production of cars and airplanes after reallocating resources. An increase in output is expected, but a specific answer cannot be provided without productivity rates.

Explanation:

The question deals with the economic concept of comparative advantage, a core idea in international trade theory. Countries with equal hours available for production allocate their time to produce cars and airplanes based on their comparative advantages. Once both Japan and Korea shift to exclusively producing the good for which they have a comparative advantage, we expect an increase in total output for these goods. Without specific productivity rates provided for car and airplane production in both countries, the exact numerical answer can't be determined from the given information.

Answer:

The correct answer is letter "C": brief.

Explanation:

An appellant's brief is a legal document one of the parties of a trial may submit to change the decision taken by a Court. Just like its name indicates, it is a summarized statement used by the appellant to expose the reason why they believe the decision concluded by the Court is incorrect.

The correct answer is (c) Brief. In appellate procedures, each party files a brief that contains a short summary and legal points and arguments for either reversing or affirming a lower court's decision.

In appellate procedures, each party submits a brief. This document contains a short description of the case, a factual summary, legal points and authorities, and arguments for reversing or affirming a lower court decision. The option (c) 'brief' is correct. An affidavit (option a) is a sworn written statement of fact, while a caucus (option b) is a meeting of party members. A deposition (option d) refers to the formal statement of a witness, and a motion (option e) is a procedural step taken to decide an issue in a lawsuit.

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Answer:

interest rate parity

(0.8/1)  *  (1.4*3/12)/(1.25*3/12) = 0.8

Hence It is proved that interest rate parity does not hold because the vale of forward contract is $0.79/CD.

Answer:

Explanation:

1. determine are the total dividend and the per-share dividends declared on each class of stock for each of the six years as follow:

Particulars  Preferred Dividends Common Dividends

Year Total Dividends Total Per Share Total Per Share

Year 1  $80,000         80000    0.32           0            0

Year 2  $90,000                90000    0.36           0            0

Year 3  $150,000        130000    0.52         20000    0.04

Year 4  $150,000        100000     0.4         50000     0.1

Year 5  $160,000        100000     0.4         60000     0.12

Year 6  $180,000        100000     0.4         80000     0.16

Total (a)  810000                600000     2.4         210000     0.42

Average (a/6 years)               0.4    0.07

2. Average annual dividend for preferred share is $0.40 per share and average annual dividend for common share is $0.07 per share.

3. The average annual percentage return on initial shareholders for preferred shareholder and common shareholders are 0.4% ($0.07/$17.50 x 100) and 1.6% ( $0.40/$25 x 100).

Answer:

(a) 40 hours (b)54hours (c) $551.2 (d) $62.01 (e) $744.12

Explanation:

(a)To calculate hours worked each day, since the regular work week is 40 hours with five 8 hours day

= Monday to Friday 8 hours

= 8 × 5

= 40 hours

(b) To calculate the total hours worked , we will first convert to 24 hour clock, then subtract the starting time from ending time to obtain the total hours

Monday = 8 am - 4pm ( 16 - 8) = 8hours

Tuesday = 8am - 6pm ( 18 - 8) = 10 hours

Wednesday = 8am -4pm (16 - 8)= 8hours

Thursday = 8.30 am - 6pm (18.5 - 8) = 10.5 hours

Friday = 8am - 4.30pm ( 18 - 8.5) = 9.5 hours

Saturday = 8am - 12pm (18 - 14) = 4 hours

Sunday = 8am -12pm (18 - 14)= 4hours

Total hours worked = 8 + 10 + 8 + 10.5 + 9.5 + 4 + 4

= 54hours

(c) To calculate the regular earning

Hours worked × regular wage rate

= 40 × 13.78

= $551.2

(d) To calculate the overtime earning

Overtime is used to be paid at rate of time and a half, since overtime occurs on the following days

Tuesday = 10 hours(8 .5 - 10) = 1.5

Thursday = 10.5 hours (8.5 - 10.5) = 2.0

Friday = 9.5 hours (8.5 - 9.5) = 1.0

Overtime hour × regular wage rate

Tuesday = 1.5 × 13.78 = $20.67

Thursday = 2.0 × 13.78 = $27.56

Friday = 1.0 × 13.78 = $13.78

Total overtime earning = 20.67 + 27.56 + 13.78

=$62.01

(e) The total earning

= hours worked × Total hours worked per week

= 54 × 13.78

=$744.12

Kurt Lewin developed a change model that talks about creating a perception in the mind of the people that a change is needed,then taking adequate steps to bring about that change and then standardizing the new mindset .

Explanation:

Priya is exhibiting the First stage (Unfreezing)of Kurt Lewin change model.

There are three stages of Kurt Lewin Model:

In the Beginning of the video Priya is talking about bringing the change ,by asking the colleagues to imagine "a world where you never have to wait in line for your groceries again!"

Answer: The correct answer is b) safety and efficacy.

Explanation:

A cochlear implant is a small, complex electronic device that can help to provide a sense of sound to a person who has lost hearing.

Although improvement to hearing have been recorded over time but it does not negate the fact that cochlear implant is a life long commitment. As such, the safety and efficacy of the device is a concern.

Answer:

BEP = 14.11%

ROE = 14.6%

ROIC = 10.60%

Explanation:

Calculate its basic earning power (BEP)

The formula for BEP is

BEP = EBIT / Total Assets

To find Total Assets, we can use the ROA formula:

ROA = Net Income / Total Assets

7% = $365,000 / Total Assets

Total Assets = $365,000 / 7%

                     = $5,214,285.714

Now, we must find the EBIT, which means Earnigns Before Interest and Taxes.

We have a net income of $365,000. The tax rate is 40%. We solve the following formula to find the tax expense:

Tax Expense = $365,000 / ((1 - 40%) / 40%)

                      = $243,333.333

Now, we add the net income, the tax expense that we found above, and the interest expense:

EBIT = $365,000 + $243,333.333 + $127,750

        = $736,083.333

Finally we can find the BEP:

BEP = $736,083.333 / $5,214,285.714

       = 0.1411

       = 14.11%

2) To find the return on equity, we must first find the common equity

Total Invested Capital = Total Assets - Accounts Payable and Accruals

                                     = $5,214,285.714 - $1,050,000

                                     = $4,164,285.714

Common Equity = Total Invested Capital x 60%

                           = $4,164,285.714 x 60%

                          = $2,498,571.428

Now we can solve for ROE

ROE = Net Income / Common Equity

       = $365,000 / $2,498,571.428

       = 0.1460

       = 14.6%

3) To find the return on invested capital, we use this formula:

ROIC = EBIT(1 - T) / Total Invested Capital

         = $736,083.333 (1 - 40%) / $4,164,285.714

         = 0.1060

         = 10.60%

Answer:(1) BEP = 0.12 (2) ROE = 0.09 (3) ROIC = 0.08

Explanation:

Since we are given 7% as ROA

Therefore to calculate total Asset

= Net income / ROA

= 365,000/ 0.07

= $5,214,285.71

To calculate tax expense

= Tax rate × Net income

= 40% × 365,000

= 0.4 × 365,000

= $146,000

EBIT = Net income + Tax expense + interest expense

= 365,000 + 146,000 + 127,750

=$638,750

BEP = EBIT/ Total Assets

= 638,750/5,214,285.17

=0.12

To calculate ROE

ROE = Net income / Shareholders Equity

To calculate shareholders Equity

=Total capital invested = Total Asset - Account payable

= 5,214,285.17 - 1,050,000

= $4,164,285.71

Common Equity = 4,164,285.71 × 60%

= $2,498,571.42

Debt = 4,164,285.71 × 40%

= 1,665,714.06

Shareholders Equity = Common Equity + Debt

= 2,498,571.42 + 1,665,714.06

=$4,164,285.48

ROE = Net income / Shareholders Equity

= 365,000/4,164,285.48

= 0.09

To calculate Return on invested capital

ROIC = Net income / Total invested capital

= 365,000/ 4,164,285.71

=0.08

Answer:

Audit is an independent examination of records,financial statements or process in order to give report to the party that has commissioned the audit

Explanation:

Audit can be of the three types highlighted in the question.

Audit of financial statements involves an external auditor examining the financial statements of clients i.e the income statement,statement of financial position.the cash flow statement as well statement of changes in equity e.t.c with a view to expressing an opinion on whether the financial statements show a true and fair view of the performance of the organisation audited and sometimes whether they were prepared in line with generally accepted accounting standards such as US GAAP.

Compliance audit is simply to find out whether the person audited has conformed with certain laid down policies and procedures such as the policies to follow in granting credit facilities to bank customers.

Process audit is about examining a process to see if the steps taken by the person carrying the tasks are logical and to find out areas for improvement in order to cut down time and resources used.

Answer:

$392,600

Explanation:

Given that,

On December 31, 2013, balance sheet showed net fixed assets = $1,238,000

December 31, 2014, balance sheet showed net fixed assets = $1,416,000

Depreciation expense 2014 = $214,600

Firm's net capital spending for 2014:

= Net fixed assets on December 31, 2014 - Net fixed assets on December 31, 2013 + 2014 Depreciation expense

= $1,416,000 - $1,238,000 + $214,600

= $392,600

Therefore, the firm's net capital spending for 2014 is $392,600.

Answer:

ASC 450-Accounting Standards codification (FASB 5) provides rules for acceptable accounting practices in relation to both loss and gain contingencies.

GAIN CONTINGENCY, but not loss contingency, is a matter of importance in the given cases. In the event of a favorable judgment on Acme, $480000 will be received which will be considered revenue because the total loss due to damage to the machinery has already been deducted from revenue on the basis of USGAAP.

LOSS CONTINGENCY is not the case. Because there is no damage or loss to REED and, in the event of an unfavorable outcome, Acme is not expected to pay for any damages, except for possible legal fees. In the case of an appeal brought by the opponent, the possibility of claiming legal expenses is very remote.

Following two point are important in deciding the application of the FASB 5

1. Acme had won the case in the lower court.

2. Amount of gain is quantifiable in the event of a favorable outcome.

As provided in the FASB 5, recognisation of such gain in financial statements leads to recognisation of future income and it is against the prudence concept of accountancy.

In view of all the issues, management is advised to disclose the amount of potential gain, but does not include income statement.

Answer:

Date August 1st

cash   195,840 debit

   unearned revenue   195,840 credit

--to record the subcription sale on August 1st--

Date December 31th

unearned revenue   81,600 debit

             subscription revenue   81,600 credit

--to record accrued revenue at Dec 31th--

Explanation:

11,520 magazine subscriptions x $ 17 = $ 195,840

The subcription wil lbe unearned revenue at sale and reveneu will be recognize overtime as the earnings are accrued.

accrued from August 1 to Dec 20: 5 months

$ 195,840 x 5 months / 12 months = $ 81,600

To determine if Sharon Jones owes taxes or will receive a refund for 2019, her gross income is adjusted by deducting the deductions for AGI and her itemized deductions. The final tax liability is then compared with her withholdings to ascertain the outcome. Without exact tax rates, a specific amount cannot be given, but this provides the method for calculation.

To determine whether Sharon Jones has a tax due or a refund for the tax year 2019, we must first calculate her taxable income and then apply the appropriate tax rates and credits. We start with her gross income of $159,800 and subtract the deductions for AGI ($5,500) and her itemized deductions ($14,000), since the question indicates she itemizes her deductions rather than taking the standard deduction. It's important to note that without the specific tax brackets and rates for 2019, an exact tax liability cannot be calculated in this response. However, the method involves subtracting deductions from the gross income to find the taxable income, then applying the tax rates to this amount, subtracting tax credits, and finally comparing the tax liability with the amount withheld ($22,000) to determine if a refund is due or additional tax is owed.

The general formula to estimate tax owed or refund is:

Taxable Income = Gross Income - Deductions for AGI - Itemized (or Standard) Deductions

Then, calculate the tax on this taxable income, subtract the credits, and finally compare the result with the amount withheld. If the withholding is more than the calculated tax after credits, Sharon would receive a refund. If the withholding is less, she would owe additional tax.

To calculate the various manufacturing costs for Foxboro Manufacturing Company, you sum up direct labor, overhead costs, and direct materials used; calculate work-in-process; and factor in beginning and ending inventories to find cost of goods manufactured and sold, as well as total prime and conversion costs.

Calculating Costs in Manufacturing

The goal is to calculate various manufacturing costs for Foxboro Manufacturing Company using the given inventory and cost data.

Here are the computations for each requirement:

Total manufacturing costs incurred during the year is the sum of direct labor costs incurred, manufacturing overhead costs, and the total cost of direct materials used.

Direct materials used is calculated as the beginning direct materials inventory plus direct materials purchased minus ending direct materials inventory: (250,800 + 1,750,200 - 169,400).

Total work-in-process during the year is the sum of total manufacturing costs and the beginning work-in-process inventory minus the ending work-in-process inventory.

Cost of goods manufactured during the year is the total work-in-process during the year added to the beginning work-in-process inventory and then subtracting the ending work-in-process inventory.

Cost of goods sold during the year is the cost of goods manufactured plus beginning finished goods inventory minus ending finished goods inventory.

Total prime costs for the year is the sum of direct labor and direct materials used.

Total conversion costs for the year is the sum of direct labor costs and manufacturing overhead costs.

After calculating all the above, we get a clear picture of how the production costs are distributed across materials, labor, and overheads resulting in the cost structure for Foxboro Manufacturing Company.

Answer:

1) decrease of equity:

2) increase of equity

3) increase of equity

Explanation:

1) the treasury stock decrase the equity outstanding

5,000 shares x $45 = $225,000

2) when we sale the sales our equity increase:

2,000 x 49 = 98,000

cost 2,000 x 45 = 90,000

we reocgnize an additional paid-in treasury stock for 8,000

as we cannot recognize a gain from selling our own shares

3) 500 x 40 = 20,000

cost 500 x 45 = 22,500

we decrease the addtional paid-in for 2,500 as we sale at "loss"

The treasury transactions include a purchase of shares, which reduces cash and increases treasury stock, and sales of shares, which increase cash and may affect additional paid-in capital and/or retained earnings depending on the sale price relative to the cost.

To determine the effect of treasury stock transactions on a company's financial statements using the cost method, we need to analyze each of the given transactions separately.

Answer:u are a wierdo mister

Explanation:u dont need brainly

JK

Answer:

d. First Quarter Sales exceed projections.

Explanation:

The message from the vice president sales should be formal and concise. It should convey the content of mail to the reader so that personnel that are reading it will have a summarised idea of what the mail is all about.

First Quarter Sales exceed projections - expresses this well. The content of the mail is the first quarter sales details and the fact that the company exceeded projections is also stated.

The other options Good News, FYI, and Sales Figures does not convey the content of the mail effectively.

The most effective subject line for a good-news message about first-quarter sales would be 'First Quarter Sales exceed projections'. This subject line is informative, attention-grabbing, and hints at the content of the message.

The best subject line for your message would be 'First Quarter Sales exceed projections'. This option not only brings out the good news but also provides specific details about what the good news is. It captures the reader's attention immediately and induces them to read further to get more details of this positive news. For example, how much did the sales exceed the projections by, what contributed to this significant achievement, etc. This subject line gives direct information about the first quarter sales and that they have been better than expected, encouraging the reader to find out more about this success.

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Answer:

The share at the current year will be worth $ 17.23

Explanation:

We solve for the earnins in four years:

[tex]1.15 \times (1+0.4)^3(1+0.03)^1=FV[/tex]

Earnigns at 4th year: 3.250268

We pay 75% which is: 3.25 x 75% = 2.44

Now we use the gordonal model:

[tex]\frac{Dividends}{return - grow}[/tex]

2.44 / (0.12 - 0.03) = 2.44/0.09 = 27.11

Last, we discount this as it is 4 years into the future.

[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]  

Maturity  $27.1100

time  4.00

rate  0.12000

[tex]\frac{27.11}{(1 + 0.12)^{4} } = PV[/tex]  

PV   17.2289

The value of a Sinclair Pharmaceuticals share today can be calculated using a combination of the Dividend Discount Model and the Gordon Growth Model, taking into account the high growth over the next three years followed by a steady growth, and also the company's decision to start pay dividends after 4 years.

The value of a share for Sinclair Pharmaceuticals today can be calculated using the Dividend Discount Model (DDM). The DDM is a method of valuing a company's stock by using predicted dividends and discounting them back to present value. First, we need to calculate the expected earnings for the first three years when the annual growth is 40%, and then for the years after that when the annual growth is 3%.

Since Sinclair will not pay dividends for the first three years, and all earnings will be reinvested, dividends will start at year 4. The dividend in year 4 will be 75% of the earnings in that year. This dividend can then be discounted back to present value using the 12% equity cost of capital.

The value of the Sinclair Pharmaceuticals shares after year 3 can be calculated by using the Gordon Growth Model, which is a version of the DDM that assumes a constant rate of dividend growth. The present value of these future dividends can then be calculated using the 12% equity cost of capital.

The total value of a Sinclair Pharmaceuticals share today is then the sum of the present value of the dividends for year 4 and the present value of the dividends from year 5 and onwards.

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Answer:

It is a violation of NASD rules against guaranteeing a customer against loss.

Explanation:

In this case the RR is guaranteeing the customer against loss. The customer initially bought the shares for $20 the new price is $10. The RR now coming in to buy the shares above market value is a way to guarantee the customer against loss, and its a NASD violation.

Answer:

D. Order the parties to arbitrate

Explanation:

Under an arbitration agreement, the parties to such a contract mutually agree to settling future disputes outside court.

Like every contract, such a contract is legally binding and the terms cannot be revoked by one of the parties later. The parties are bound by arbitration in such cases, as is mutually agreed initially.

As per the facts of the case, such an arbitration agreement has been entered into by Jan and Kyle, wherein it was mutually agreed to settle outside court, in the event of a dispute. When the said dispute arose, Jan filed a suit against Kyle.

In such a scenario, the court will likely D. Order the parties to arbitrate.

Answer:

B. Due to a decrease in state​ funding, university tuition has risen

Explanation:

Positive economic statement - it is referred to as the statement that can be tested, validated on the basis of available evidence. A positive statement is used to explain different economic phenomena. The positive economic statement is totally based on fact while the normative statement is based on the value of judgment.

In the given question the correction option is B. This option describes the economic phenomena.

Answer:

Spain has a comparative advantage in the production of olives and;

Austria has a comparative advantage in the production of fish

9 pounds of fish per crate of olives (being more favorable to Spain)

6 pounds of fish per crate of olives (being more favorable to Austria)

Explanation:

Spain renounce to 5 pounds of fish to produce olives while Austria to 10

threfore is much better in competitive term for Spain as the opportunity cost is lower

The opposite is true for Autria regarding fish production. is better producing that as renounce to less olives than Spain

Austria will sale above purchase olive for less than 10

while Spain will sale for more than 5

Given this requirement there are two options which allow for trade and generate gain for both countries.

In international trade involving Spain and Austria, the best price of trade, or 'exchange rate', that benefits both countries is '6 pounds of fish per crate of olives'. This accounts for both nations' opportunity costs while ensuring mutual benefits.

Based on the given opportunity costs, Spain has a comparative advantage in producing olives and Austria has a comparative advantage in producing fish. The opportunity cost for Spain to produce one crate of olives is 5 pounds of fish while for Austria it is 10 pounds of fish.

For the trade to be beneficial to both countries, Spain needs to receive more than 5 pounds of fish for each crate of olives it exports to Austria. Similarly, Austria needs to receive more than 1/5 crate of olives for each pound of fish it exports to Spain. So, analyzing the four options, the price of trade that would benefit both countries is '6 pounds of fish per crate of olives'.

This is more than Spain’s opportunity cost of 5 pounds of fish but less than Austria’s opportunity cost of 10 pounds of fish, making it a beneficial trade scenario for both countries.

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Answer:

The correct answer is b. Matrix Project.

Explanation:

The correct answer to this question is matrix project. When project manager utilizes the skills and expertise of personnel from different functional areas within the organization, this is referred to as Matrix project. The different functional areas can include marketing, HR, Finance, Supply chain and others.

Answer:

2L + 4D = 480   {L = Lite Bear, D = Dark Bear, 480 = minutes in 8 hours}

Explanation:

The function to be maximised :

Profit Function = Price x Quantity (of Lite & Dark Bears) = 3L + 2D ; where-

L = Lite Bear, D = Dark Bear

Constraint 1 [Time Constraint] :- 2L + 4D = 480 ; where-

L = Lite Bear, D = Dark Bear, 480 = minutes in 8 hours

2 = minutes required per unit Lite Bear, 4 = minutes required per unit Lite Bear, 480 = minutes in total 8 hours (8x60)     {∵1hr = 60mins}

Similarly, Constraint 2  [Malt Extract Constraint] :- 5L + 3D = 675

The time constraints for the Blue Moon Brewing Co.'s brewing operations are set at 480 minutes or 8 hours per day. Lite beer requires 2 minutes per keg and Dark beer needs 4 minutes per keg.

The time constraint in this case is determined by the available brewing hours and the amount of time it takes to produce each type of beer. From the given, the operations manager of Blue Moon Brewing Co. has 8 hours per day for brewing beer. Converted to minutes, this equals 480 minutes (8 hours x 60 minutes/hour). To produce a keg of Lite beer requires 2 minutes and each keg of Dark beer takes 4 minutes. Therefore, to maximize profits the brewing should not exceed 480 minutes per day using the optimal combination of brewing Lite and Dark beer.

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The Income Elasticity of Demand for bagels is 0.67, meaning Alex's consumption of bagels increases with income. On the other hand, the Income Elasticity of Demand for donuts is -0.4, indicating that as Alex's income increases, his consumption of donuts decreases.

The subject of this question is the calculation of the Income Elasticity of Demand for bagels and donuts based on changes in Alex's income. The Income Elasticity of Demand measures the responsiveness of the quantity demanded for a good as a result of a change in income.

Now, let's calculate the Income Elasticity of Demand. The formula is: Income Elasticity of Demand = (% change in Quantity Demanded) / (% change in Income)

For bagels: Income Elasticity of Demand = ((10-6)/6) / ((4000-2000)/2000). That equals 0.67. Alex's consumption of bagels is income elastic because the Income Elasticity of Demand is greater than zero, meaning that as his income increases, he consumes more bagels.

For donuts: Income Elasticity of Demand = ((9-15)/15) / ((4000-2000)/2000) = -0.4. Alex's consumption of donuts is income inelastic because the Income Elasticity of Demand is less than zero, indicating that as his income increases, he consumes fewer donuts.

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Answer:

TIE = 4,985.71

Explanation:

[tex]TIE = \frac{EBIT}{interest \: expense}[/tex]

net income / (1 - tax-rate) = Earnings before taxes

3,000 / 0.7 = 4,285.71

Earnigns before taxes + interest = EBIT (earnings before interest and taxes)

4,285.71 + 700 = 4,985.71

Manufacturer's Inc company's estimated times-interest-earned ratio is 7 times, assuming its average tax rate is 30% and fixed interest charges are $700.

The Times-interest-earned ratio is a valuable measure for determining a company's ability to repay the interest imposed on any sort of borrowing. A high ratio implies that the company's earnings are sufficient to repay its debt obligations.

Time-Interest-Earned ratio = [tex]\dfrac{\rm\,EBIT}{\rm\,Interest\,Charges}[/tex]

Given that the net income is $3,000 which includes the interest charges and tax expense deductions. So, to get Earnings before Interest and Taxes we have to add back interest charges and tax expenses.

[tex]\rm\,EBIT = \rm\,Net \,income + Interest\,Charges + Taxes= \$3,000 + \$700 + \$1286= \$ 4,986[/tex]

= [tex]\rm\,Times\, Interest\,Earned\,ratio =\\\\ \dfrac{\rm\,EBIT}{\rm\,Interest\,Charges}\\\\= \dfrac{\rm \$\,4,986}{\rm\$700}\\\\ = \rm\,7\,times[/tex]

Hence, the manufacturer's Inc company's estimated times-interest-earned ratio is 7 times.

To learn more about the times- interest earned ratio, refer to the link:

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Answer:

As the further process makes an increase in the revenue of the product the company should continue the processing to achieve an additional 3,000 revenue from product C regardless of the cost associate at splitoff point.

It will increase operating income by 3,000

Explanation:

With the given information we can derive the following using a differential analysis:

Differential revenue:

71,000 - 53,000 = 18,000

Differential cost:   15,000 (cost of further process)

Differential gain:    3,000