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Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Miller Company Sales $ 1,150,000

Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes).

Miller Company

Sales $ 1,150,000

Variable expenses (80%) 920,000

Income before interest 230,000

Interest expense (fixed) 64,000

Net income $ 166,000

Weaver Company

Sales $ 1,150,000

Variable expenses (60%) 690,000

Income before interest 460,000

Interest expense (fixed) 294,000

Net income $ 166,000

Required:
1.

Compute times interest earned for Miller Company.

Times interest earned for Miller Company
Choose Numerator: / Choose Denominator: = Times interest earned
/ = Times interest earned
/ = 0

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