Question
Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $279,000 $306,900 Income before income
Berry Company reported the following on the company's income statement in two recent years:
| Current Year | Prior Year | |||
| Interest expense | $279,000 | $306,900 | ||
| Income before income tax expense | 3,654,900 | 3,590,730 | ||
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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Auditing An International Approach
Authors: Wally Smieliauskas, Amy Kwan, Kathleen Cogliano, Catherine Barrette
8th Canadian Edition
1259451275, 978-1259451270
