The initial analysis should include the following:The ratio equationThe calculation of the ratio using the equation with the financial data from the two assigned companies.Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving.The original post should include at least three (3) sentences but no more than seven (7) sentences. Page 422QS 11-12 Times interest earned A10Park Company reports interest expense of $145,000 and income before interest expense and income taxesof $1,885,000. (1) Compute its times interest earned. (2) Park's competitor's times interest earned is 4.0. IsPark in a better or worse position than its competitor to make interest payments if the economy turns bad?

Times-interest-earned ratio: The time interest earned ratio aids in determining the company's…

Answered: tial analysis should include the…

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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The initial analysis should include the following:

The ratio equation
The calculation of the ratio using the equation with the financial data from the two assigned companies.
Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
Then explain whether this is a good result or a result that needs improving.
The original post should include at least three (3) sentences but no more than seven (7) sentences.

Page 422
QS 11-12 Times interest earned A10
Park Company reports interest expense of $145,000 and income before interest expense and income taxes
of $1,885,000. (1) Compute its times interest earned. (2) Park's competitor's times interest earned is 4.0. Is
Park in a better or worse position than its competitor to make interest payments if the economy turns bad?

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