. Great Products, Inc. reported the following on the company’s income statement in two recent years: Current Year Prior Year Interest Expense $270,000 $250,000 Income before income tax expense 4,212,000 3,450,000 a. Determine the times interest earned ratio for the current year and the prior year. Round to one decimal place. b. Is the times interest earned ratio improving or declining?

Managerial Accounting
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Chapter16: Financial Statement Analysis
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Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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. Great Products, Inc. reported the following on the company’s income statement in two recent years:
Current Year Prior Year
Interest Expense $270,000 $250,000
Income before income tax expense 4,212,000 3,450,000
a. Determine the times interest earned ratio for the current year and the prior year. Round to one
decimal place.
b. Is the times interest earned ratio improving or declining? 

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