The Times Interest Earned Ratio for Bodhaine's Orchard Was 8

question 211

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.

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