Iacouva Company reported the following on the company's income statement for 2016 and 2015: __________________________2016_2015 Interest expense..............................$5,000,000............$5,000,000

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Iacouva Company reported the following on the company's income statement for 2016 and 2015:

____________________________________2016_____________2015__

Interest expense..............................$5,000,000............$5,000,000

Income before income tax....................3,500,000..............6,000,000

a. Determine the number of times interest charges are earned for 2016 and 2015. Round to one decimal place.

b. What conclusions can you draw?

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Financial Accounting

ISBN: 978-1305088436

14th edition

Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac

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Question Posted: Dec 19, 2016 10:58 AM

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Iacouva Company reported the following on the company's income statement for 2016 and 2015: ____________________________________2016_____________2015__ Interest expense..............................$5,000,000............$5,000,000

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Iacouva Company reported the following on the company's income statement for 2016 and 2015: __________________________2016_2015 Interest expense..............................$5,000,000............$5,000,000