The following financial information was obtained from the year ending 2014 income statements for Griffith Automotive and Bowen Automotive:

Requirements
1. Compute the times-interest-earned ratio for each company.
2. Which company was better able to cover its interestexpense?

Transcribed Image Text:

Griffith Bowen Net income Income tax expense Interest expense $27,200 60,800 23,000 2,400 8,100 250