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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
PE 12-9AÂ Â number of times interest charges are earned
Â
Berry Company reported the following on the company’s income statement in 2016  and 2015:
Â
                                                    2016              2015  Â
Â
Â
Â
|
Interest expense |
$Â Â 320,000 |
$Â Â 300,000 |
|
Income before income tax expense |
3,200,000 |
3,600,000 |
Â
a.    Determine the number of times interest charges are earned for 2016 and 2015. Round to one decimal place.
Â
b.    Is the number of times interest charges are earned improving or declining?
Â
Â
Â
Â
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