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Balance sheet and income statement data indicate the following: Bonds payable, 7% (due in 15 years) $849,509 Preferred 8% stock, $100 par (no change during
Balance sheet and income statement data indicate the following:
Bonds payable, 7% (due in 15 years) | $849,509 |
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 | 410,612 |
Income tax for year | 123,184 |
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.4.83
b.7.91
c.6.91
d.3.83
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