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Times Interest Earned lacouva Company reported the following on the company's income statement for two recent years: Current Year Prior Year Interest expense $5,000,000 $5,000,000

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Times Interest Earned lacouva Company reported the following on the company's income statement for two recent years: Current Year Prior Year Interest expense $5,000,000 $5,000,000 Income before income tax expense 3,500,000 6,000,000 a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. Current year 5,000,00 x Prior year b. Although the company has enough earnings to pay interest in the current year, the decrease in this ratio is a cause for concern to debtholders

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