Afirm has net income of $4,238 and interest expense of $898. the tax rate is 35 percent. what is the firm's times interest earned ratio?

Calculation of firm's times interest earned ratio:

The times interest earned ratio can be calculated with the help of following formula:

Times interest earned ratio = Income before Interest and Tax / Interest Expense

Interest expense is given $898, and Income before Interest and Tax can be calculated as follows:

Net Income $4,238

Add: Tax (4238*35/65) $2,282

Income before tax  =$6520

Add: Interest Expense $898

Income before Interest and Tax = $7,418

Hence, Times interest earned ratio = 7418 /898 = 8.26 times

how to allocate resources among his four stores.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

The four factors of production are;

I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.

II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.

IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

In this scenario, George owns four dry cleaning stores in the suburbs of Orlando, Florida. He recently updated his STP analysis and has finished adjusting his marketing mix based on the STP results. His next strategic marketing decision will most likely involve determining how to allocate resources among his four stores.