Question: Compute the interest coverage ratios for 20 ( 7 and 20 ( 8 from the partial income statements of Wool Company that appear below. State

Compute the interest coverage ratios for 20 ( 7 and 20 ( 8 from the partial income statements of Wool Company that appear below. State whether the ratio improved or worsened over time?

20x8 20x7 Income from operations Interest expense 47,780 $36,920 11,600 6,600 Income before income taxes 36,180 $30,320 9,000 $25,380 $21,320 Income taxes Net income 10,800

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