Question
Times interest earned Averill Products Inc. reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $440,000
Times interest earned
Averill Products Inc. reported the following on the company's income statement in two recent years:
| Current Year | Prior Year | |||
| Interest expense | $440,000 | $400,000 | ||
| Income before income tax expense | 5,544,000 | 4,400,000 | ||
a. Determine the number of times interest charges are earned for current year and the prior year. Round to one decimal place.
| Current Year | |
| Prior Year |
b. Is the number of times interest charges are earned improving or declining?
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Auditing And GRC Automation In SAP
Authors: Maxim Chuprunov
2013 Edition
3642434525, 978-3642434525
