Question: 626 chapter 1 1 Learning Objective 5 E11-24 Computing times-interest-earned ratio The following financial information was obtained from the year ended 2018 income statements for

626 chapter 1 1 Learning Objective 5 E11-24

626 chapter 1 1 Learning Objective 5 E11-24 Computing times-interest-earned ratio The following financial information was obtained from the year ended 2018 income statements for Cash Automotive and Pennington Automotive: 1. Cash Ratio 118.80 times Net income Income tax expense Interest expense Cash Pennington $26,070 $74,188 9,270 27,080 2,900 300 Requirements for each company. Round tot decimals. 2. Which company was better able to cover its interest expense

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