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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
النسخة 14الرقم المعياري الدولي: 978-1305653535Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
النسخة 14الرقم المعياري الدولي: 978-1305653535 تمرين 37
Aeropostale: Times interest earned
Aeropostale, Inc. is a specialty fashion retailer targeting young adults. The income before income tax expense and interest expense for four recent years follows (in millions).
A. Compute the times interest earned ratio for each year. (Round to one decimal place.)
B. Plot the four points on a graph with the year numbers on the horizontal axis, beginning with Year 1.
C. Interpret the trend in the ratio from your graph.
D. What happened to interest expense in Year 4? What might be the cause?
Aeropostale, Inc. is a specialty fashion retailer targeting young adults. The income before income tax expense and interest expense for four recent years follows (in millions).
A. Compute the times interest earned ratio for each year. (Round to one decimal place.)
B. Plot the four points on a graph with the year numbers on the horizontal axis, beginning with Year 1.
C. Interpret the trend in the ratio from your graph.
D. What happened to interest expense in Year 4? What might be the cause?
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Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac
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