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Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,293,062 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 411,786 Income tax for year 123,536 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.4.98 b.2.79 c.1.79 d.3.98

Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,293,062 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 411,786 Income tax for year 123,536 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.4.98 b.2.79 c.1.79 d.3.98

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 7E: Basic Income Statement The following are selected account balances of Rule Corporation at the end of...
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    Balance sheet and income statement data indicate the following:

    Bonds payable, 8% (due in 15 years) $1,293,062
    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 411,786
    Income tax for year 123,536
    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.4.98
    b.2.79
    c.1.79
    d.3.98

 

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