Question
Times Interest Earned Loomis, Inc., reported the following on the companys income statement in two recent years: Current Year Prior Year Interest expense $329,000 $394,800
Times Interest Earned
Loomis, Inc., reported the following on the companys income statement in two recent years:
| Current Year | Prior Year | |||
| Interest expense | $329,000 | $394,800 | ||
| Income before income tax expense | 4,540,200 | 5,250,840 | ||
a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place.
| Current year | fill in the blank 1 |
| Prior year | fill in the blank 2 |
b. Is this ratio improving or declining?
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Cloud 9 Pty Ltd An Audit Case Study
Authors: John Wiley
1st Edition
0730329879, 978-0730329879
