X-Caliber had income before interest and income tax expense of $225,000 in Year 1,and $200,000 in Year 2.Its interest expense was $45,000 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 X-Caliber had income before interest and income tax expense of $225,000 in Year 1,and $200,000 in Year 2.Its interest expense was $45,000 for both years.Calculate the times interest earned ratio for both years,and comment on the company's level of risk.

X-Caliber Had Income Before Interest and Income Tax Expense of $225,000