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Times interest earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50
Times interest earned The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States: Interest expense Income before income tax Current Year Preceding Year $80,000 304,000 $87,000 156,600 a. Determine the times interest earned ratio for the current and preceding years. Round to one decimal place. Current year I Preceding year b. Although Caliber Company had enough earnings to pay interest in the preceding year, thei by the debtholders. in this ratio will be
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