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Balance sheet and income statement data indicate the following: $865,000 Bonds payable, 10% (due in two years) Preferred 5% stock, $100 par (no change during
Balance sheet and income statement data indicate the following: $865,000 Bonds payable, 10% (due in two years) Preferred 5% stock, $100 par (no change during year) 277,400 Common stock, $50 par (no change during year) 1,813,600 Income before income tax for year 375,075 Income tax for year 86,306 Common dividends paid 90,680 Preferred dividends paid 13,870 Interest expense 86,500 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. 5.34 3.34 2.31 0.43 The net income reported on the income statement for the current year was $318,689. Depreciation recorded on fixed assets and amortization of patents for the year were $33,893, and $9,291, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: End Beginning Cash $45,614 $56,418 Accounts receivable 124,747 100,971 Inventories 106,926 85,710 Prepaid expenses 3,888 7,190 Accounts payable (merchandise creditors) 57,970 60,716 What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? a. $317,437 b. $406,309 c. $249,651 d. $387,727
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