Averill Products Inc. reported the following on the

Last updated: 7/29/2022

Averill Products Inc. reported the following on the company's income statement in 20Y8 and 20Y9: Interest expense 20Y9 20Y8 Income expense $470,000 $410,000 income before income tax 5,311,000 4,141,000 expense a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place. 20Y9 20Y8 Times Interest Earned b. Is the change in the times interest earned ratio favorable or unfavorable? Favorable Feedback Check My Work a. (Income Before Income Tax Expense + Interest Expense)/Interest Expense to obtain the ratio. b. This ratio computes the number of times interest payments could be paid out of current-period earnings. High values are considered favorable.