Compute the interest coverage ratios for 2011 and 2012 from the partial income statements of Rozmus Company

Question:

Compute the interest coverage ratios for 2011 and 2012 from the partial income statements of Rozmus Company that appear below. State whether the ratio improved or worsened over time.

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Financial Accounting

ISBN: 978-0538476010

11th edition

Authors: Belverd E. Needles, Marian Powers

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Question Posted: Sep 10, 2014 11:41 AM

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Compute the interest coverage ratios for 2011 and 2012 from the partial income statements of Rozmus Company

Question:

Income from operations Interest expense Income before income taxes Income taxes Net income 2012 2011 $11,945S9,230 2,900 1,650 S 9,045 7,580 2,225 S 6,345 $5,355 2,700

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The interest coverage ratio declined from 2011 to 2012 from 56 to 4...View the full answer

Financial Accounting

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