Analyze and compare Clorox and Procter & Gamble The Clorox Company (CLX) and The Procter & Gamble Company (PG) produce and sell packaged consumer products around the world. Income and interest expense information from financial statements for a recent year follows (in millions):   Clorox Procter & Gamble Interest expense $88 $579             Income before income tax expense 983 13,369             a. Compute the times interest earned for each company. Round to one decimal place. Clorox: fill in the blank 1 Procter & Gamble: fill in the blank 2 b. If you were a lender to these two companies, which one appears to have the greater coverage of interest expense and thus the greater protection for your loan interest?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Analyze and compare Clorox and Procter & Gamble

The Clorox Company (CLX) and The Procter & Gamble Company (PG) produce and sell packaged consumer products around the world. Income and interest expense information from financial statements for a recent year follows (in millions):

  Clorox Procter & Gamble
Interest expense $88 $579            
Income before income tax expense 983 13,369            

a. Compute the times interest earned for each company. Round to one decimal place.

Clorox: fill in the blank 1

Procter & Gamble: fill in the blank 2

b. If you were a lender to these two companies, which one appears to have the greater coverage of interest expense and thus the greater protection for your loan interest?

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