Answered: Balance sheet and income statement data… | bartleby

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)	$991,000
Preferred 5% stock, $100 par (no change during year)	219,000
Common stock, $50 par (no change during year)	2,181,700
Income before income tax expense	309,103
Income tax expense	73,268
Common dividends paid	109,085
Preferred dividends paid	10,950

Based on the data presented, what is the times interest earned ratio?

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