E Calculator Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $1,000,000 300,000 Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) 2,000,000 Income before income tax for 550,000 80,000 year Income tax for year 50,000 Common dividends paid 15,000 Preferred dividends paid Based on the data presented, what is the times interest earned ratio? (Round to one decimal point.) Ca. 6.4 b. 1.5 Cc. 5.5 (Od. 6.5
E Calculator Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $1,000,000 300,000 Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) 2,000,000 Income before income tax for 550,000 80,000 year Income tax for year 50,000 Common dividends paid 15,000 Preferred dividends paid Based on the data presented, what is the times interest earned ratio? (Round to one decimal point.) Ca. 6.4 b. 1.5 Cc. 5.5 (Od. 6.5
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 7MCQ
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Question
What is the time interest earned ratio
Transcribed Image Text:E Calculator
Balance sheet and
income statement data indicate the following:
Bonds payable, 10% (due in two years)
$1,000,000
300,000
Preferred 5% stock, $100 par (no change during year)
Common stock, $50 par (no change during year)
2,000,000
Income before income tax for
550,000
80,000
year
Income tax for year
50,000
Common dividends paid
15,000
Preferred dividends paid
Based on the data presented, what is the times interest earned ratio? (Round to one decimal point.)
Ca. 6.4
b. 1.5
Cc. 5.5
(Od. 6.5
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