Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) Preferred 8% stock, $100 par (no change during the year) Common stock, $50 par (no change during the year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid O O O O a. Based on the data presented, what is the times interest earned ratio (round to two decimal places)? 5.06 b. 4.06 c. 1.85 $1,369,148 d. 2.85 200,000 1,000,000 333,924 100,177 60,000 16,000
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) Preferred 8% stock, $100 par (no change during the year) Common stock, $50 par (no change during the year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid O O O O a. Based on the data presented, what is the times interest earned ratio (round to two decimal places)? 5.06 b. 4.06 c. 1.85 $1,369,148 d. 2.85 200,000 1,000,000 333,924 100,177 60,000 16,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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