. Great Products, Inc. reported the following on the company’s income statement in two recent years: Current Year Prior Year Interest Expense $270,000 $250,000 Income before income tax expense 4,212,000 3,450,000 a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the times interest earned ratio improving or declining?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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. Great Products, Inc. reported the following on the company’s income statement in two recent years:
Current Year Prior Year
Interest Expense $270,000 $250,000
Income before income tax expense 4,212,000 3,450,000
a. Determine the times interest earned ratio for the current year and the prior year. Round to one
decimal place.
b. Is the times interest earned ratio improving or declining? 

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