Question: Ex 10 - Times Interest Earned - Data Analysis a) The following information is from the Income Statements of the Einstein Corporation: Current year Prior
Ex 10 - Times Interest Earned - Data Analysis a) The following information is from the Income Statements of the Einstein Corporation: Current year Prior Year Income before Interest and Taxes $ 700,000 $ 650,000 Interest Expense $ 200,000 $ 150,000 Income before Taxes $ 500,000 $ 500,000 Tax Expense $ 100,000 $ 100,000 Net Income $ 400,000 $ 400,000 1) Calculate the number of times interest is earned for the current year?, 2) Calculate the number of times interest is earned for the prior year? b) What conclusions can you draw
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