Shown here are condensed income statements for two different companies (assume no income taxes).
Miller Company
Sales – $1,250,000
Variable expenses (80%) – $1,000,000
Income before interest – $250,000
Interest expense (fixed) – $72,000
Net income – $178,000
Weaver Company
Sales – $1,250,000
Variable expenses (60%) – $750,000
Income before interest – $500,000
Interest expense (fixed) – $322,000
Net income – $178,000
Compute times interest earned for Miller Company and for Weaver Company.
Order an Essay Now & Get These Homework Help Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
