The information related to Stereo Music is given below:
$$\begin{array} { | l | r | r | }
\hline & \begin{array} { c }
\text { Year ended } \
\text { December } 31,2012
\end{array} & \begin{array} { c }
\text { Year ended } \
\text { December } 31,2013
\end{array} \
\hline \text { Net Income } & \$ 81,510 & \$ 210,570 \
\hline \text { Income Tax Expense } & 55,910 & 103,505 \
\hline \text { Interest Expense } & 6,595 & 59,505 \
\hline
\end{array}$$ Calculate the times-interest-earned ratio for each year and also state the percentage change in the ratio.

Question

The information related to Stereo Music is given below:
 $$\begin{array} { | l | r | r | } 
\hline & \begin{array} { c } 
\text { Year ended } \
\text { December } 31,2012
\end{array} & \begin{array} { c } 
\text { Year ended } \
\text { December } 31,2013
\end{array} \
\hline \text { Net Income } & \$ 81,510 & \$ 210,570 \
\hline \text { Income Tax Expense } & 55,910 & 103,505 \
\hline \text { Interest Expense } & 6,595 & 59,505 \
\hline
\end{array}$$ Calculate the times-interest-earned ratio for each year and also state the percentage change in the ratio.

Quizplus · Accepted Answer

The Answer of The information related to Stereo Music is given below:
 $$\begin{array} { | l | r | r | } 
\hline & \begin{array} { c } 
\text { Year ended } \
\text { December } 31,2012
\end{array} & \begin{array} { c } 
\text { Year ended } \
\text { December } 31,2013
\end{array} \
\hline \text { Net Income } & \$ 81,510 & \$ 210,570 \
\hline \text { Income Tax Expense } & 55,910 & 103,505 \
\hline \text { Interest Expense } & 6,595 & 59,505 \
\hline
\end{array}$$ Calculate the times-interest-earned ratio for each year and also state the percentage change in the ratio.

The Information Related to Stereo Music Is Given Below Calculate the Times-Interest-Earned Ratio for Each Year and Also State