Question: Reviewing the computation for times interest earned. Why do you think creditors may use this ratio to access a company's financial condition? What does it

  • Reviewing the computation for "times interest earned". Why do you think creditors may use this ratio to access a company's financial condition? What does it indicate?
  • Identifying at least one other ratio that creditors may use.
  • Why do some items get "special presentation" on the income statement? It doesn't change the bottom line, so what difference does it make?

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