This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: (a) 47.9%. (b) 51.7%. (c) 40.7%. (d) 44.0%. Answer: (d) 44.0%. Compute the times interest earned for 2010. (a) 11.2 times. (b) 65.3 times. (c) 14.0 times. (d) 13.0 times. Answer: (c) 14.0 times. Which situation below might indicate a company has a low quality of earnings? (a) The same accounting principles are used each year. (b) Revenue is recognized when earned. (c) Maintenance costs are capitalized and then depreciated. (d) The company's P-E ratio is high relative to competitors. Answer: (c) Maintenance costs are capitalized and then depreciated....
View Full Document
- Spring '11
- 1916, Maintenance costs, profit margin ratio, common stockholders, assets Current liabilities