The Following Financial Statement Information Is Available for Long Corporation

question 71

Multiple Choice

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