The following financial information was obtained from the year ended 2024 income statements for Cash Automotive and

Question:

The following financial information was obtained from the year ended 2024 income statements for Cash Automotive and Pennington Automotive:image text in transcribed

Requirements 

1. Compute the times-interest-earned ratio for each company. Round to two decimals.
2. Which company was better able to cover its interest expense?

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Horngrens Financial And Managerial Accounting The Managerial Chapters

ISBN: 9781292412337

7th Global Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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