Times interest earned Averill Products Inc. reported the following on the company's income statement in 20Y8...

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Times interest earned Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest $470,000 $410,000 expense Income before 5,311,000 4,141,000 income tax expense a. Determine the times interest earned ratio for 2018 and 2019. Round to one decimal place. 20Y9 20Y8 Times Interest Earned 11.3 x 10.1 x b. Is the change in the times interest earned ratio favorable or unfavorable? Favorable Feedback 4 Check My Work a. (Income Before Income Tax Expense + Interest Expense)/Interest Expense to obtain the ratio. b. This ratio computes the number of times interest payments could be paid out of current-period earnings. High values are considered favorable. Times interest earned Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest $470,000 $410,000 expense Income before 5,311,000 4,141,000 income tax expense a. Determine the times interest earned ratio for 2018 and 2019. Round to one decimal place. 20Y9 20Y8 Times Interest Earned 11.3 x 10.1 x b. Is the change in the times interest earned ratio favorable or unfavorable? Favorable Feedback 4 Check My Work a. (Income Before Income Tax Expense + Interest Expense)/Interest Expense to obtain the ratio. b. This ratio computes the number of times interest payments could be paid out of current-period earnings. High values are considered favorable.