Times interest earned Obj. 4 Berry Company reported the following on the companys income statement in two
Question:
Times interest earned Obj. 4 Berry Company reported the following on the company’s income statement in two recent years:
20Y5 20Y4 Interest expense $ 320,000 $ 300,000 Income before income tax expense 3,200,000 3,600,000
a. Determine the times interest earned ratio for 20Y4 and 20Y5. Round to one decimal place.
b. Is the change in the times interest earned ratio favorable or unfavorable?
AppendixLO1
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Related Book For
Corporate Financial Accounting
ISBN: 9781337398176
15th Edition
Authors: Carl Warren, Jefferson Jones
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