Question
Times interest earned Berry Company reported the following on the company's income statement in two recent years: Current Year Prior Year Interest expense $326,000 $391,200
Times interest earned
Berry Company reported the following on the company's income statement in two recent years:
| Current Year | Prior Year | |||
| Interest expense | $326,000 | $391,200 | ||
| Income before income tax expense | 4,238,000 | 5,398,560 | ||
a. Determine the number of times interest charges were earned for current Year and 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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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
IFRS edition volume 2
978-0470613474, 470613475, 978-0470616314
