Question 14.9: Times Interest Earned Harris Industries reported the followi...

Financial Accounting

Times Interest Earned

Harris Industries reported the following on the company’s income statement in 20Y7 and 20Y6:

	20Y7	20Y6
Interest expense	$ 200,000	$ 180,000
Income before income tax expense	1,000,000	720,000

a. Determine the times interest earned ratio for 20Y7 and 20Y6.

b. Is times interest earned ratio improving or declining?

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