Ex 12-15 number of times interest charges are earned ObJ.6
Loomis, Inc. reported the following on the company’s income statement in 2016 and 2015:
|
2016 |
2015 |
|
|
Interest expense |
$ 13,500,000 |
$ 16,000,000 |
|
Income before income tax expense |
310,500,000 |
432,000,000 |
a. Determine the number of times interest charges were earned for 2016 and 2015. Round to one decimal place.
Ex 12-16 number of times interest charges are earned ObJ.6Iacouva Company reported the following on the company’s income statement for 2016 and 2015:
|
2016 |
2015 |
|
|
Interest expense |
$5,000,000 |
$5,000,000 |
|
Income before income tax |
3,500,000 |
6,000,000 |
a. Determine the number of times interest charges are earned for 2016 and 2015. Round to one decimal place.
b. What conclusions can you draw?
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