Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in 2 years) $967,000 Preferred 5% stock, $100 par (no change during 262,400 year) Common stock, $50 par (no change during year) 1,587,100 Income before income tax expense 372,965 Income tax expense Common dividends paid Preferred dividends paid Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. O a. 2.86 73,525 79,355 13,120 b. 0.39 ○ c. 4.86 O d. 2.59

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Balance sheet and income statement data indicate the following:
Bonds payable, 10% (due in 2 years)
$967,000
Preferred 5% stock, $100 par (no change during
262,400
year)
Common stock, $50 par (no change during year)
1,587,100
Income before income tax expense
372,965
Income tax expense
Common dividends paid
Preferred dividends paid
Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.
O a. 2.86
73,525
79,355
13,120
b. 0.39
○ c. 4.86
O d. 2.59
Transcribed Image Text:Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in 2 years) $967,000 Preferred 5% stock, $100 par (no change during 262,400 year) Common stock, $50 par (no change during year) 1,587,100 Income before income tax expense 372,965 Income tax expense Common dividends paid Preferred dividends paid Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. O a. 2.86 73,525 79,355 13,120 b. 0.39 ○ c. 4.86 O d. 2.59
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