Computing times-interest-earned ratio the following, Finance Basics

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Computing times-interest-earned ratio the following

Question: Computing times-interest-earned ratio The following financial information was obtained from the year ended 2016 income statements for Johnson Automotive and Stanley Automotive:

Requirements: 1. Compute the times-interest-earned ratio for each company.

2. Which company was better able to cover its interest expense?

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Finance Basics: Computing times-interest-earned ratio the following

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