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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 YearPreceding YearInterest expense$76,000 $83,000 Income before income tax319,200 199,200
a. Determine the times interest earned ratio for the a. Current and b. Preceding years. Round to one decimal place.
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