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Times interest earned

Averill Products Inc. reported the following on the company$$s income statement in $20$Y$8$ and $20$Y$9$:

$20$Y$920$Y$8$

Interest expense $$440,000$ $$400,000$

Income before income tax expense $5,544,0004,400,000$

a$.$ Determine the times interest earned ratio for $20$Y$8$ and $20$Y$9.$ Round to one decimal place.

$20$Y$920$Y$8$

Times Interest Earned fill in the blank $1$

fill in the blank $2$

b$.$ Is the change in the times interest earned ratio favorable or unfavorable?eBook Show Me How

Question Content Area

Times interest earned

Averill Products Inc. reported the following on the company$$s income statement in $20$Y$8$ and $20$Y$9$:

$20$Y$920$Y$8$

Interest expense $$440,000$ $$400,000$

Income before income tax expense $5,544,0004,400,000$

a$.$ Determine the times interest earned ratio for $20$Y$8$ and $20$Y$9.$ Round to one decimal place.

$20$Y$920$Y$8$

Times Interest Earned fill in the blank $1$

fill in the blank $2$

b$.$ Is the change in the times interest earned ratio favorable or unfavorable?eBook Show Me How

Question Content Area

Times interest earned

Averill Products Inc. reported the following on the company$$s income statement in $20$Y$8$ and $20$Y$9$:

$20$Y$920$Y$8$

Interest expense $$440,000$ $$400,000$

Income before income tax expense $5,544,0004,400,000$

a$.$ Determine the times interest earned ratio for $20$Y$8$ and $20$Y$9.$ Round to one decimal place.

$20$Y$920$Y$8$

Times Interest Earned fill in the blank $1$

fill in the blank $2$

b$.$ Is the change in the times interest earned ratio favorable or unfavorable?eBook Show Me How

Question Content Area

Times interest earned

Averill Products Inc. reported the following on the company$$s income statement in $20$Y$8$ and $20$Y$9$:

$20$Y$920$Y$8$

Interest expense $$440,000$ $$400,000$

Income before income tax expense $5,544,0004,400,000$

a$.$ Determine the times interest earned ratio for $20$Y$8$ and $20$Y$9.$ Round to one decimal place.

$20$Y$920$Y$8$

Times Interest Earned fill in the blank $1$

fill in the blank $2$

b$.$ Is the change in the times interest earned ratio favorable or unfavorable?