A company's income before interest expense and income taxes in 2010 and 2011 is $395,000 and $427,000, respectively. Its fixed interest expense was $125,000 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 and 2011 is $395,000 and $427,000, respectively. Its fixed interest expense was $125,000 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