Balance Sheet and Income Statement Data Indicate the Following Based on the Data Presented Above,what Is the Number of

question 40

Multiple Choice

Balance sheet and income statement data indicate the following: $\begin{array}{lr}\text { Bonds payable, } 10 \% \text { due in two years } & \$ 1,000,000 \\\text { Preferred } 5 \% \text { stock, } \$ 100 \text { par no change during year } & 300,000 \\\text { Common stock, } \$ 50 \text { par no change during year } & 2,000,000 \\\text { Income before income tax for year } & 550,000 \\\text { Income tax for year } & 80,000 \\\text { Common dividends paid } & 50,000 \\\text { Preferred dividends paid } & 15,000\end{array}$ Based on the data presented above,what is the number of times bond interest charges were earned round to one decimal point?

• A)1.5
• B)6.4
• C)6.5
• D)5.5

---

Definitions:

Median

The middle value in a data set when the values are arranged in ascending or descending order, or the average of the two middle values if there is an even number of values.

Skewed

Describes data that is not symmetrically distributed, often leaning more heavily towards one side of the scale.

Large Coffee Prices

The cost associated with purchasing larger sizes of coffee beverages from cafes or coffee shops.

Gap

The difference or discrepancy between two points, figures, or elements, often used to identify missing pieces or disparities.