Times interest earned Averill Products Inc. reported the following on the company’s income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest expense $410,000 $380,000 Income before income tax expense 4,756,000 3,914,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 Times Interest Earned fill in the blank 1 fill in the blank 2 b. Is the change in the times interest earned ratio favorable or unfavorable?
Times interest earned Averill Products Inc. reported the following on the company’s income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest expense $410,000 $380,000 Income before income tax expense 4,756,000 3,914,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 Times Interest Earned fill in the blank 1 fill in the blank 2 b. Is the change in the times interest earned ratio favorable or unfavorable?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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Times interest earned
Averill Products Inc. reported the following on the company’s income statement in 20Y8 and 20Y9:
20Y9 | 20Y8 | |||
Interest expense | $410,000 | $380,000 | ||
Income before income tax expense | 4,756,000 | 3,914,000 |
a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place.
20Y9 | 20Y8 | |||
Times Interest Earned | fill in the blank 1 | fill in the blank 2 |
b. Is the change in the times interest earned ratio favorable or unfavorable?
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