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 $293,000 $322,300
Times interest earned
Berry Company reported the following on the company's income statement in two recent years:
| Current Year | Prior Year | |||
| Interest expense | $293,000 | $322,300 | ||
| Income before income tax expense | 3,545,300 | 4,189,900 | ||
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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Forensic And Investigative Accounting
Authors: Professor D. Larry Crumbley, Lester E. Heitger, G. Stevenson Smith
8th Edition
0808046241, 9780808046240
