The Following Financial Statement Information Is Available for Long Corporation

question 63

Multiple Choice

The following financial statement information is available for Long Corporation: $\begin{array}{lrr}&2017&2016\\\text { Net income } & \$ 115,000 & \$ 80,000 \\\text { Income tax expense } & 30,000 & 29,000 \\\text { Interest expense } & 18,000 & 14,000 \\\text { Dividends paid to preferred } & & \\\quad \text { stockholders } & 22,000 & 20,000\\\text { Dividends paid to preferred }\\\text { stockholders }&15,000&10,000\end{array}$ The times interest earned for 2017 is

• A) 7.4 times.
• B) 6.4 times.
• C) 9.1 times.
• D) 7.8 times.

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Definitions:

Medicaid

Medicaid is a government-funded program in the United States providing health care coverage to people with low income, including some low-income adults, children, pregnant women, elderly adults, and people with disabilities.

The Poor

Refers to individuals or groups who lack the financial resources to meet basic living standards considered acceptable in a society.

Income Distribution

The manner in which a nation's total earnings are divided among its population, affecting wealth equality or disparity.

Poverty Line

The poverty line is a threshold that defines the minimum level of income deemed necessary to achieve an adequate standard of living in a given country.