Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest expense $380,000 $350,000 Income before income tax expense 4,522,000 3,640,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 Times Interest Earned b. Is the change in the times interest earned ratio favorable or unfavorable?

Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: 20Y9 20Y8 Interest expense $380,000 $350,000 Income before income tax expense 4,522,000 3,640,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 Times Interest Earned b. Is the change in the times interest earned ratio favorable or unfavorable?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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