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Operating income P675,000 Interest Expense 75,000 Income before 40% income tax 600,000 Net Income 360,000 Preferred stock dividends 150,000 Net Income available to common shareholders 210,000 Common shares outstanding 90,000 The times interest earned ratio is   6.75 - kindly provide a solution why this is the answer

Operating income P675,000 Interest Expense 75,000 Income before 40% income tax 600,000 Net Income 360,000 Preferred stock dividends 150,000 Net Income available to common shareholders 210,000 Common shares outstanding 90,000 The times interest earned ratio is   6.75 - kindly provide a solution why this is the answer

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
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 8RE
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Operating income P675,000
Interest Expense 75,000
Income before 40% income tax 600,000
Net Income 360,000
Preferred stock dividends 150,000
Net Income available to common shareholders 210,000
Common shares outstanding 90,000
The times interest earned ratio is
 
6.75 - kindly provide a solution why this is the answer
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