A7 please help..... Balance sheet and income statement data indicate the following:Bonds payable, 10% (due in 2 years)$967,000Preferred 5% stock, $100 par (no change during262,400year)Common stock, $50 par (no change during year)1,587,100Income before income tax expense372,965Income tax expenseCommon dividends paidPreferred dividends paidBased on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.O a. 2.8673,52579,35513,120b. 0.39○ c. 4.86O d. 2.59

Step 1: Formula Times interest earned ratio = Earnings before interest and taxes/Total interest…

Answered: Balance sheet and income statement data…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...

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Ratio of liabilities to stockholders equity and times interest earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: The income before income tax expense was 480,000 and 420,000 for the current and previous years, respectively. A. Determine the ratio of liabilities to stockholders equity at the end of each year. Round to one decimal place. B. Determine the times interest earned ratio for both years. Round to one decimal place. C. What conclusions can be drawn from these data as to the companys ability to meet its currently maturing debts?
Balance sheet and income statement data indicate the following: Line Item Description Amount Bonds payable, 10% (due in 2 years) $991,000 Preferred 5% stock, $100 par (no change during year) 219,000 Common stock, $50 par (no change during year) 2,181,700 Income before income tax expense 309,103 Income tax expense 73,268 Common dividends paid 109,085 Preferred dividends paid 10,950 Based on the data presented, what is the times interest earned ratio?
Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $928,000 Preferred 5% stock, $100 par (no change during year) 285,500 Common stock, $50 par (no change during year) 1,703,800 Income before income tax for year 344,012 Income tax for year 73,804 Common dividends paid 85,190 Preferred dividends paid 14,275 Interest expense 92,800 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places.
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) Preferred 8% stock, $100 par (no change during the year) Common stock, $50 par (no change during the year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid $1,369,148 a. 5.06 b. 4.06 c. 1.85 d. 2.85 200,000 1,000,000 333,924 100,177 60,000 16,000 Based on the data presented, what is the times interest earned ratio (round to two decimal places)?
Balance sheet and income statement data indicate the following: Line Item Description Amount Bonds payable, 10% (due in 2 years) $863,000 Preferred 5% stock, $100 par (no change during year) 215,400 Common stock, $50 par (no change during year) 1,965,500 Income before income tax expense 373,064 Income tax expense 76,993 Common dividends paid 98,275 Preferred dividends paid 10,770 Based on the data presented, what is the times interest earned ratio? Round your answer to two decimal places. a. 2.31 b. 5.32 c. 3.32 d. 0.43
Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two years) $937,000 Preferred 5% stock, $100 par (no change during year) 243,000 Common stock, $50 par (no change during year) 1,770,000 Income before income tax for year 359,000 Income tax for year 70,000 Common dividends paid 88,500 Preferred dividends paid 12,150 Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,082,526 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 414,083 Income tax for year 124,225 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)? Oa. 2.35 Оb. 3.35 Oc. 4.78 Od. 5.78
Balance sheet and income statement data indicate the following: Bonds payable, 8% (due in 15 years) $1,293,062 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 411,786 Income tax for year 123,536 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.4.98 b.2.79 c.1.79 d.3.98
Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,200,000 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 320,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented above, what is the times interest earned ratio (round to two decimal places)? a. 5.44 b. 4.33 c. 5.00 d. 4.00
Balance sheet and income statement data indicate the following: Bonds payable, 6% (this is Year 4 of 20 years) $1,200,000 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 340,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented above, what is the times interest earned ratio (round to two decimal places)?
Question Content Area Balance sheet and income statement data indicate the following: Bonds payable, 6% (due in 15 years) $1,114,580 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 407,169 Income tax for year 122,151 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. 3.26 b. 7.09 c. 4.26 d. 6.09
Balance sheet and income statement data indicate the following: Bonds payable, 6% (this is Year 4 of 20 years) $1,000,000 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 340,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000 Based on the data presented above, what is the times interest earned ratio (round to two decimal places)?

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