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Question - Times interest earned
The following data were taken from recent annual reports of Caliber Company, which operates a low-fare airline service to more than 50 cities in the United States:
Current Year
Preceding Year
Interest expense
$48,000
$52,000
Income before income tax
$302,400
$228,800
Required - Determine the times interest earned ratio for the current and preceding years.
Consolidated Tax Returns
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