SportsWorld had income before interest and income tax expense of $395,000 in Year 1 and $427,000 in Year 2.Its interest expense was $125,000 for both years.Calculate the times interest earned ratio for both years and comment on the company's level of risk.

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The Answer of SportsWorld had income before interest and income tax expense of $395,000 in Year 1 and $427,000 in Year 2.Its interest expense was $125,000 for both years.Calculate the times interest earned ratio for both years and comment on the company's level of risk.

SportsWorld Had Income Before Interest and Income Tax Expense of $395,000