Number of Times Interest Charges are Earned Berry Company reported the following on the company's income statement in 2016 and 2015: 2016 $320,000 3,200,000 2015 $300,000 3,600,000 Interest expense Income before income tax expense a. Determine the number of times interest charges are earned for 2016 and 2015 2016 2015 b. Is the number of times interest charges are earned improving or declining? Declining Feechac Check My Work This ratio computes the number of times interest payments could be paid out of current period earnings. Because interest payments reduce income tax expense, the ratio is co income before tax Learning Objective 6