A company's income before interest expense and income taxes in 2014 and 2015 is $225,000 and
$250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

Question

Quizplus · Accepted Answer

The Answer of A company's income before interest expense and income taxes in 2014 and 2015 is $225,000 and
$250,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

A Company's Income Before Interest Expense and Income Taxes in 2014