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For the most recent year end, JKJ Company has profit of $545,000, interest expense of $30,000, tax expense of $25,000, and depreciation expense of $20,000.
For the most recent year end, JKJ Company has profit of $545,000, interest expense of $30,000, tax expense of $25,000, and depreciation expense of $20,000. JKJ Company's statements for last year show profit of $505,000, interest expense of $35,000, tax expense of $20,000, and depreciation expense of $20,000. What happened to their interest coverage ratio? The ability of the company to cover its interest costs cannot be determined from this information. The ability of the company to cover its interest costs remains unchanged from last year. The ability of the company to cover its interest costs decreased. The ability of the company to cover its interest costs increased
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