Concept Inroduction: Net Income: It is the total earnings (or profit)of a company. Net income is the excess of revenues over income. Accrued Expense: An accrued expense is an accounting expense recognized in the books before it is paid for. It is the expense for which we have rendered the service but have not received the payment. It is a current liability. Times Interest Earned: Times interest earned is also called interest coverage ratio. It is a measure of a company's ability to honor its debt payments. A lower times interest earned ratio means less earnings are available to meet interest payments. EBIT: It means earning before interest and Tax. Requirement1 To Determine: Time Interest Earned for the year 2013, 2014, 2015

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Chapter 11, Problem 1BTN

To determine

Concept Inroduction:

Net Income: It is the total earnings (or profit)of a company. Net income is the excess of revenues over income.

Accrued Expense: An accrued expense is an accounting expense recognized in the books before it is paid for. It is the expense for which we have rendered the service but have not received the payment. It is a current liability.

Times Interest Earned: Times interest earned is also called interest coverage ratio. It is a measure of a company's ability to honor its debt payments. A lower times interest earned ratio means less earnings are available to meet interest payments.

EBIT: It means earning before interest and Tax.

Requirement1

To Determine: Time Interest Earned for the year 2013, 2014, 2015

To determine

Requirement 2

To Determine: Accrued Expenses

To determine

Requirement 3

To Determine: Time Interest Earned for the year 2016

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