Balance sheet and income statement data indicate the following: Bonds payable, 6 % (issued 2000, due 2020) $1,200,000 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 340,000 Income tax for year 80,000 Common dividends paid -60,000 Preferred dividends paid 16,000 Based on the data presented above, what is the number of times bond interest charges were earned (round to two decimal places)? Answer: 5.72 6.83 4.72 -4.83

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How would I calculate this problem? I just guessed on which answer made sense to me. Please help. thank you in advance.

Accounting Question