Sprout Company reported the following on the company's income statement in two recent years:       Current Year     Prior Year Interest expense $510,000   $480,000   Income before income tax expense 5,610,000   6,720,000   a.  Determine the times interest earned ratio for the current year and the prior year. Current year   Prior Year   b.  Is the times interest earned ratio improving or declining?

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Q: The formula for determining the rate earned on total assets is Net Income + Interest Expense/Average…

A: Rate earned on total assets = (Net income + Interest expense)/Average total assets

Q: The formula for determining the rate earned on total assets is Net Income + Interest Expense/Average…

A: Rate earned on total assets = (Net Income + Interest Expense)/Average Total Assets.

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A: Given: Net income = $12,500 Interest expense = $2,500 Times interest earned = 9

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A: Working note:

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Q: What is the company's times interest earned ratio?

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A: a. Calculate the times interest earned ratio for the current year and the previous year

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A: a.

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A: a.Calculate interest earned ratio for current year and prior year.

Q: Times Interest Earned Loomis, Inc., reported the following on the company's income statement in tvo…

A: Working:   Current Year Prior Year Income before income tax expense $310,500,000   $432,000,000…

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A: Return on Total Assets= Earnings Before Interest and Tax/ Average Total Assets

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Q: Determine the number of times interest charges were earned for current Year and prior Year. Round to…

A: Times-Interest-Earned ratio:   It is the ratio that quantify a business ability to pay interest…

Q: The following data (in millions) are taken from the financial statements of Target Corporation:…

A: a.

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A: The time interest earned ratio helps to find company's ability to pay off its obligations of debt on…

Q: Times Interest Earned Sprout Company reported the following on the company's income statement in two…

A: Times interest earned ratio shows ability of the business in meeting debt obligations with the help…

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A: Times-Interest-Earned Ratio Formula:

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Q: For the most recent year Camargo Inc., had sales of $556,000, cost of goods sold $248960,…

A:

Q: Citrine Company reported the following on its income statement:  Income before income taxes…

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Q: imes interest earned Berry Company reported the following on the company's income statement in two…

A: Time interest earned is a measurement of an organization's capacity to meet the debt obligation…

Q: The Year 2 fiscal year-end financial statements for Walter Co. report revenues of $55,743 million,…

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A: Income statement:   The financial statement which reports revenues and expenses from business…

Q: Based on the following ratios and percentages, complete the following Income Statement and Balance…

A: Credit sale=Gross profitGross profit percent×100×80%=$2,100,00035×100×80%=$4,800,000

Q: In the recent year Hill Corporation had net income of $140,000, interest expense of $40,000, and tax…

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Q: Berry Company reported the following on the company's income statement in two recent years: Current…

A: Requirement a:Calculate the times-interest earned ratio for the current year and the prior year.

Q: Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9:…

A: Times interest earned ratio shows the ability of a company to meet it's interest obligation. Times…

Q: National Company's net income last year was P65,000 and its interest expense was P15,000. Total…

A: The return on total assets is calculated as net income divided by average total assets.