Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,425,545 Income before income tax for year 301,376 Income tax for year 90,413 Interest payable 33,000 Interest receivable 19,000 Interest expense 114,044 Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.) а. 3.64 Оb. 185 Oc. 0.85 Od. 2.64
Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,425,545 Income before income tax for year 301,376 Income tax for year 90,413 Interest payable 33,000 Interest receivable 19,000 Interest expense 114,044 Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.) а. 3.64 Оb. 185 Oc. 0.85 Od. 2.64
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
![Balance sheet and income statement data indicate the following:
Bonds payable, 8% (due in 15 years)
$1,425,545
Income before income tax for year
301,376
Income tax for year
90,413
Interest payable
33,000
Interest receivable
19,000
Interest expense
114,044
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
Oa. 3.64
Оь. 1.85
Ос. 0.85
Od. 2.64](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79f4eed3-92d2-4e30-9a9a-6d2e0a8c0457%2F983349b8-7c6b-4ee1-9fbb-5365756f148b%2Fa1qjgr_processed.png&w=3840&q=75)
Transcribed Image Text:Balance sheet and income statement data indicate the following:
Bonds payable, 8% (due in 15 years)
$1,425,545
Income before income tax for year
301,376
Income tax for year
90,413
Interest payable
33,000
Interest receivable
19,000
Interest expense
114,044
Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)
Oa. 3.64
Оь. 1.85
Ос. 0.85
Od. 2.64
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education