Times interest earned ratio


A company's income before interest expense and income taxes in 2008 and 2009 is $225,000 and $200,000, respectively. Its interest expense was $45,000 for both years. Calculate the company's times interest earned ratio, and comment on its level of risk.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Times interest earned ratio
Reference No:- TGS065621

Expected delivery within 24 Hours