Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
The times interest earned ratio for 20Y8 and 20Y9 are 11 and 12.6 respectively.
The change in the times interest earned ratio is favorable.
According to the question,
In 20Y8 and 20Y9, Averill Products Inc. disclosed the following on its income statement:
For 20Y9,
Interest expense= $440,000
Income before income tax expense= $5,544,000
Times interest earned ratio= 5544000/440000 = 12.6
For 20Y8,
Interest expense=$400,000
Income before income tax expense=$4,400,000
Times interest earned ratio= 4400000/400000 =11
As the times interest earned ratio for 20Y9 is greater than that for 20Y8,the change in the times interest earned ratio is favorable.
Learn more about ratio here:
https://brainly.com/question/2328454
#SPJ1
Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
