Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: Interest expense Income before income tax expense 20Y9 20Y8 $440,000 $400,000 5,544,000 4,400,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. Times Interest Earned 20Y9 20Y8

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Module 6 Problem Set
1. EX.12.01.ALGO
2. EX.11.01
3. BE.12.06.ALGO
4. BE.12.03.ALGO
5. BE.12.08.ALGO
6. BE.12.01.ALGO
7. BE.12.07
8. BE.11.07
Times interest earned
Averill Products Inc. reported the following on the company's
income statement in 20Y8 and 20Y9:
Interest
expense
Income before income tax expense
20Y9
Times Interest Earned
20Y8
$440,000
$400,000
5,544,000 4,400,000
a. Determine the times interest earned ratio for 20Y8 and 20Y9.
Round to one decimal place.
20Y9
20Y8
?
Transcribed Image Text:Module 6 Problem Set 1. EX.12.01.ALGO 2. EX.11.01 3. BE.12.06.ALGO 4. BE.12.03.ALGO 5. BE.12.08.ALGO 6. BE.12.01.ALGO 7. BE.12.07 8. BE.11.07 Times interest earned Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: Interest expense Income before income tax expense 20Y9 Times Interest Earned 20Y8 $440,000 $400,000 5,544,000 4,400,000 a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 ?
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