14-9 14-2 Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense
14-9 14-2 Times interest earned
Berry Company reported the following on the company's income statement in two recent years:
|
| Current Year | Prior Year | ||
| Interest expense | $450,000 |
| $540,000 |
|
| Income before income tax expense | 6,435,000 |
| 7,992,000 |
|
a. Determine the number of times interest charges were earned for current Year and prior Year. Round to one decimal place.
| Current Year |
|
| Prior Year |
|
b. Is the number of times interest charges are earned improving or declining?
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Authors: Amjad Umar
1st Edition
097274147X, 978-0972741477
