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?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 39E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...

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How do I calculae the times interest earned ratio?
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