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Balance sheet and income statement data indicate the following: Company A Company B $1,200,000 $900,000 Bonds payable, 8% (issued 2000, due 2024) Preferred 5% stock,

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Balance sheet and income statement data indicate the following: Company A Company B $1,200,000 $900,000 Bonds payable, 8% (issued 2000, due 2024) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) 300,000 400,000 1,000,000 1,000,000 Income before income tax for year 495,000 130,000 Income tax for year 75,000 12,000 Common dividends paid 50,000 0 Preferred dividends paid 15,000 20,000 a. For each company, what is the times interest earned ratio (round to one decimal place)? Company A Company B b. Which company gives potential creditors the most protection

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