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Times interest earned Averill Products Inc. reported the following on the companys income statement in...

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Accounting

Times interest earned

Averill Products Inc. reported the following on the companys income statement in 20Y8 and 20Y9:

20Y920Y8

Interest expense$460,000 $420,000

Income before income tax expense5,520,000 4,284,000

a. Determine the times interest earned ratio for 20Y8 and 20Y9. Round to one decimal place.

20Y920Y8

Times Interest Earned

b. Is the change in the times interest earned ratio favorable or unfavorable?

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