Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $958,000 Preferred 5% stock, $100 par (no change during year) 200,700 Common stock, $50 par (no change during year) 1,678,600 Income before income tax for year 382,956 Income tax for year 76,163 Common dividends paid 83,930 Preferred dividends paid 10,035 Interest expense 95,800 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. 3.00 0.40 5.00 2.50
Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $958,000 Preferred 5% stock, $100 par (no change during year) 200,700 Common stock, $50 par (no change during year) 1,678,600 Income before income tax for year 382,956 Income tax for year 76,163 Common dividends paid 83,930 Preferred dividends paid 10,035 Interest expense 95,800 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. 3.00 0.40 5.00 2.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Bonds payable, 10% (due in two years) | $958,000 |
| 200,700 | |
| Common stock, $50 par (no change during year) | 1,678,600 |
| Income before income tax for year | 382,956 |
| Income tax for year | 76,163 |
| Common dividends paid | 83,930 |
| Preferred dividends paid | 10,035 |
| Interest expense | 95,800 |
Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.
3.00
0.40
5.00
2.50
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