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

question 4

Essay

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.

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Nomothetic

Nomothetic refers to an approach in psychological and social science research that focuses on identifying general laws that apply across individuals, as opposed to studying the unique aspects of individuals.

Idiographic

An approach focusing on the unique aspects of individuals, emphasizing personal experiences and subjective perceptions.

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