Balance sheet and income statement data indicate the following: Bonds payable, 7% (due in 15 years) $850,550 Preferred 8% stock, $100 par (no change during the year) 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 379,777 Income tax for year 113,933 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented, what is the times interest earned ratio (round to two decimal places)?
Balance sheet and income statement data indicate the following: Bonds payable, 7% (due in 15 years) $850,550 Preferred 8% stock, $100 par (no change during the year) 200,000 Common stock, $50 par (no change during the year) 1,000,000 Income before income tax for year 379,777 Income tax for year 113,933 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented, what is the times interest earned ratio (round to two decimal places)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Bonds payable, 7% (due in 15 years) | $850,550 |
| (no change during the year) | 200,000 |
| Common stock, $50 par | |
| (no change during the year) | 1,000,000 |
| Income before income tax for year | 379,777 |
| Income tax for year | 113,933 |
| Common dividends paid | 60,000 |
| Preferred dividends paid | 16,000 |
Based on the data presented, what is the times interest earned ratio (round to two decimal places)?
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