A company's income before interest expense and income taxes in 2010 was $225,000 and $200,000 in 2011.Its interest expense was $45,000 for both years.Calculate the company's times interest earned ratio and comment on its level of risk.

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The Answer of A company's income before interest expense and income taxes in 2010 was $225,000 and $200,000 in 2011.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 2010