Balance sheet and income statement data indicate the following: Bonds payable, 6% (this is year 4 of 20 years) $1,200,000 Income before income tax for year 340,000 Income tax for year 80,000 Interest payable 9,000 Interest receivable 26,000 Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.) a.4.72 b.5.72 c.4.83 d.6.83
Balance sheet and income statement data indicate the following: Bonds payable, 6% (this is year 4 of 20 years) $1,200,000 Income before income tax for year 340,000 Income tax for year 80,000 Interest payable 9,000 Interest receivable 26,000 Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.) a.4.72 b.5.72 c.4.83 d.6.83
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Bonds payable, 6% (this is year 4 of 20 years) | $1,200,000 |
Income before income tax for year | 340,000 |
Income tax for year | 80,000 |
Interest payable | 9,000 |
Interest receivable | 26,000 |
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
a.4.72
b.5.72
c.4.83
d.6.83
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