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Balance sheet and income statement data indicate the following: Line Item Description Amount Bonds payable, 10% (due in 2 years) $863,000 Preferred 5% stock, $100 par (no change during year) 215,400 Common stock, $50 par (no change during year) 1,965,500 Income before income tax expense 373,064 Income tax expense 76,993 Common dividends paid 98,275 Preferred dividends paid 10,770 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. a. 2.31 b. 5.32 c. 3.32 d. 0.43

Balance sheet and income statement data indicate the following: Line Item Description Amount Bonds payable, 10% (due in 2 years) $863,000 Preferred 5% stock, $100 par (no change during year) 215,400 Common stock, $50 par (no change during year) 1,965,500 Income before income tax expense 373,064 Income tax expense 76,993 Common dividends paid 98,275 Preferred dividends paid 10,770 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. a. 2.31 b. 5.32 c. 3.32 d. 0.43

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Balance sheet and income statement data indicate the following: Line Item Description Amount Bonds payable, 10% (due in 2 years) $863,000 Preferred 5% stock, $100 par (no change during year) 215,400 Common stock, $50 par (no change during year) 1,965,500 Income before income tax expense 373,064 Income tax expense 76,993 Common dividends paid 98,275 Preferred dividends paid 10,770 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.

a. 2.31

b. 5.32

c. 3.32

d. 0.43

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