Question 48

1. The following financial statement information is available for Bongo Corporation:

   Bongo Corporation

   Bongo Corporation	2013	2012
   Net income	$115,000	$80,000
   Income tax expense	50,000	29,000
   Interest expense	15,000
   		14,000
   Dividends paid to preferred stockholders	22,000	20,000
   Dividends paid to common stockholders	15,000	10,000

   The times interest earned for 2013 is

   	A.	12 times.
   	B.	7.7 times.
   	C.	11 times.
   	D.	8.8 times.