The Following Financial Statement Information Is Available for Bongo Corporation

question 168

Multiple Choice

The following financial statement information is available for Bongo Corporation: $\begin{array}{lrr}&2013&2012\\\text { Net income } & \$ 115,000 & \$ 80,000 \\\text { Income tax expense } & 50,000 & 29,000 \\\text { Interest expense } & 15,000 & 14,000 \\\text { Dividends paid to preferred } & & \\\quad \text { stockholders } & 22,000 & 20,000 \\\begin{array}{l}\text { Dividends paid to preferred } \\\quad \text { stockholders }\end{array} & 15,000 & 10,000\end{array}$ The times interest earned for 2013 is

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