Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $936,000 Preferred 5% stock, $100 par (no change during year) 202,000 Common stock, $50 par (no change during year) 1,623,000 Income before income tax for year 380,000 Income tax for year 76,000 Common dividends paid 81,150 Preferred dividends paid 10,100 Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)? a.7.1 b.5.1 c.4.1 d.3.1
Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $936,000 Preferred 5% stock, $100 par (no change during year) 202,000 Common stock, $50 par (no change during year) 1,623,000 Income before income tax for year 380,000 Income tax for year 76,000 Common dividends paid 81,150 Preferred dividends paid 10,100 Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)? a.7.1 b.5.1 c.4.1 d.3.1
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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3. Balance sheet and income statement data indicate the following:
| Bonds payable, 10% (due in two years) | $936,000 |
| 202,000 | |
| Common stock, $50 par (no change during year) | 1,623,000 |
| Income before income tax for year | 380,000 |
| Income tax for year | 76,000 |
| Common dividends paid | 81,150 |
| Preferred dividends paid | 10,100 |
Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
a.7.1
b.5.1
c.4.1
d.3.1
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