Key figures for Best Buy and RadioShack follow. Required 1. Compute times interest earned for the three
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Required
1. Compute times interest earned for the three years data shown for each company.
2. Comment on which company appears stronger in its ability to pay interest obligations if income should decline. Assume an industry average of 18.1.
Transcribed Image Text:
Best Buy RadioShack One Two One Two Current Year Years Current Year Years Year Prior Prior Year Prior Prior (S millions) Net income Income taxes Interest expense.... $1.003 $1407 $,377 $192.4 $236.8 $73.4 815 75 9 29.8 38.0 38.8 44.3 674 94 62 31
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