The information related to Outloud Music, Inc is given below
Year ended December Year ended December
31, 2016 31, 2017
Net Income $81,510 $210,570
Income Tax Expense 55,910 103,505
Interest Expense 6,595 59,505
Calculate the times-interest-earned ratio for each year and also state the percentage change in the ratio.
What will be an ideal response
December December
31, 2016 31, 2017
Net Income $ 81,510 $ 210,570
Income Tax Expense 55,910 103,505
Interest Expense 6,595 59,505
EBIT $ 144,015 $ 373,580
Times-interest-earned ratio (EBIT / Interest Expense) 21.84 6.28
Percentage Change [(21.84 - 6.28 ) / 21.84 x 100 ] -71.24%
You might also like to view...
The most difficult type of depreciation to remedy is:
a. physical deterioration b. functional obsolescence c. functional deterioration d. economic obsolescence
The final phase in the generic purchasing-decision model is the ________ phase which consists of customer service and evaluation of the usefulness of the product
Fill in the blank(s) with correct word