Iacouva Company reported the following on the company's income statement for 2016 and 2015: 2016...
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Accounting
Iacouva Company reported the following on the company's income statement for 2016 and 2015: 2016 2015 Interest expense $5,000,000 $5,000,000 Income before income tax expense 3,500,000 6,000,000 a. Determine the number of times interest charges are earned for 2016 and 2015. Round to one decimal place.
2016
2015
b. Although the company has enough earnings to pay interest, the increase in this ratio is not a cause for concern to debtholders.
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