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Times interest earned Averill Products Inc. reported the following on the companys income statement in 20Y8 and 20Y9: 20Y920Y8 Interest expense$460,000 $420,000 Income before income
Times interest earned
Averill Products Inc. reported the following on the companys income statement in 20Y8 and 20Y9:
20Y920Y8
Interest expense$460,000 $420,000
Income before income tax expense5,520,000 4,284,000
a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place.
20Y920Y8
Times Interest Earned
b. Is the change in the times interest earned ratio favorable or unfavorable?
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