Key figures for Polaris and Arctic Cat follow. Required 1. Compute times interest earned for the three

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Key figures for Polaris and Arctic Cat follow.

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 of20.

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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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Question Posted: Nov 26, 2013 09:54 AM

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Key figures for Polaris and Arctic Cat follow. Required 1. Compute times interest earned for the three

Question:

Arctic Cat One Two Current Year Years Current Year Years Prior Prior Polaris One Prior Two ($ thousands) Net income .. $%227,575 $147,138 $101,017 $13,007 $1,875 $(9.508) Income taxes... Interest expense... Year Prior Year 905 40 057 524 (777 (6.247) 250 015 3,987 2,680 4.11I

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1 PolarisTimes interest earned thousands Current Year One Year Prior Two Years Prior Net income 2275...View the full answer

Fundamental accounting principle

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