Required information [The following information applies to the questions displayed below.] The following information applies to Acorn Construction Company (ACC): Year 1 Net sales Income before interest and taxes Net income Interest expense Stockholders' equity December 31 Common stock Preferred stock dividends Year 2 $ 1,080,000 152,500 $ 700,000 94,000 69,000 57,000 29,500 20,000 820,300 875,000 760,300 850,000 29,000 29,000 Information on the number of shares outstanding is provided below: Average number of shares outstanding, Year 1 Average number of shares outstanding, Year 2 43,000 38,000 Required: (a) Compute number of times interest is earned by ACC for Year 2 and Year 1: Note: Round your answers to two decimal places. Number of times interest is earned Year 2 Year 1

Required information [The following information applies to the questions displayed below.] The following information applies to Acorn Construction Company (ACC): Year 1 Net sales Income before interest and taxes Net income Interest expense Stockholders' equity December 31 Common stock Preferred stock dividends Year 2 $ 1,080,000 152,500 $ 700,000 94,000 69,000 57,000 29,500 20,000 820,300 875,000 760,300 850,000 29,000 29,000 Information on the number of shares outstanding is provided below: Average number of shares outstanding, Year 1 Average number of shares outstanding, Year 2 43,000 38,000 Required: (a) Compute number of times interest is earned by ACC for Year 2 and Year 1: Note: Round your answers to two decimal places. Number of times interest is earned Year 2 Year 1

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 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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