Multiple Choice
The times interest earned ratio for Bodhaine's Orchard was 8.52 in 2014,6.63 in 2015,and 2.74 in 2016.What is the most likely interpretation of this ratio?
A) The ability to cover interest costs with resources from operations is decreasing.
B) The amount of debt has been decreasing each year.
C) Current liabilities are growing faster than current assets.
D) Income taxes have reduced an increasing amount of operating income.
Correct Answer:
Verified
Correct Answer:
Verified
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