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Question Content Area Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,114,580 Preferred 8% stock, $100 par       (no change during the year) 200,000 Common stock, $50 par       (no change during the year) 1,000,000 Income before income tax for year 407,169 Income tax for year 122,151 Common dividends paid 60,000 Preferred dividends paid 16,000     Based on the data presented, what is the times interest earned ratio (round to two decimal places)? a. 3.26 b. 7.09 c. 4.26 d. 6.09

Question Content Area Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,114,580 Preferred 8% stock, $100 par       (no change during the year) 200,000 Common stock, $50 par       (no change during the year) 1,000,000 Income before income tax for year 407,169 Income tax for year 122,151 Common dividends paid 60,000 Preferred dividends paid 16,000     Based on the data presented, what is the times interest earned ratio (round to two decimal places)? a. 3.26 b. 7.09 c. 4.26 d. 6.09

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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  1. Question Content Area

    Balance sheet and income statement data indicate the following:

    Bonds payable, 6% (due in 15 years) $1,114,580
    Preferred 8% stock, $100 par  
        (no change during the year) 200,000
    Common stock, $50 par  
        (no change during the year) 1,000,000
    Income before income tax for year 407,169
    Income tax for year 122,151
    Common dividends paid 60,000
    Preferred dividends paid 16,000
       

    Based on the data presented, what is the times interest earned ratio (round to two decimal places)?

    a. 3.26
    b. 7.09
    c. 4.26
    d. 6.09
     
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