Balance sheet and income statement data indicate the following:Bonds payable, 10% (due in two years)$928,000Preferred 5% stock, $100 par (no change during year)285,500Common stock, $50 par (no change during year)1,703,800Income before income tax for year344,012Income tax for year73,804Common dividends paid85,190Preferred dividends paid14,275Interest expense92,800Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. Balance sheet and income statement data indicate the following:Bonds payable, 10% (due in two years)Preferred 5% stock, $100 par (no change during year)Common stock, $50 par (no change during year)Income before income tax for yearIncome tax for yearCommon dividends paidPreferred dividends paidInterest expenseBased on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.O 2.70O 0.37O 2.71O 4.71$928,000285,5001,703,800344,01273,80485,19014,27592,800

Time Interest earned ratio: Time Interest earned ratio is calculated by dividing the Earnings before…

Bonds payable, 10% (due in two years) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid Interest expense Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. O 2.70 O 0.37 O 2.71 O 4.71 $928,000 285,500 1,703,800 344,012 73,804 85,190 14,275 92,800

Bonds payable, 10% (due in two years) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid Interest expense Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. O 2.70 O 0.37 O 2.71 O 4.71 $928,000 285,500 1,703,800 344,012 73,804 85,190 14,275 92,800

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:

Bonds payable, 10% (due in two years)	$928,000
Preferred 5% stock, $100 par (no change during year)	285,500
Common stock, $50 par (no change during year)	1,703,800
Income before income tax for year	344,012
Income tax for year	73,804
Common dividends paid	85,190
Preferred dividends paid	14,275
Interest expense	92,800

Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.

Balance sheet and income statement data indicate the following:
Bonds payable, 10% (due in two years)
Preferred 5% stock, $100 par (no change during year)
Common stock, $50 par (no change during year)
Income before income tax for year
Income tax for year
Common dividends paid
Preferred dividends paid
Interest expense
Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.
O 2.70
O 0.37
O 2.71
O 4.71
$928,000
285,500
1,703,800
344,012
73,804
85,190
14,275
92,800

Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.

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