The following financial information was obtained from the year ending 2014 income statements for Griffith Automotive and
Question:
The following financial information was obtained from the year ending 2014 income statements for Griffith Automotive and Bowen Automotive:
Requirements
1. Compute the times-interest-earned ratio for each company.
2. Which company was better able to cover its interestexpense?
Transcribed Image Text:
Griffith Bowen Net income Income tax expense Interest expense $27,200 60,800 23,000 2,400 8,100 250
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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