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

question 136

Multiple Choice

Balance sheet and income statement data indicate the following: $\begin{array}{l}\begin{array}{lll}\text { Bonds payable, } 6 \% \text { this is year } 4 \text { of } 20 \text { years }\\\text { Preferred 8 \% stock,\$ 100 par } \\ \text { no change during the year } \\\text { Common stock, \$ 50 par } \\\text { no change during the year } \\\text { Income before income tax for year } \\\text { Income tax for year } \\\text { Common dividends paid } \\\text { Preferred dividends paid }\\\end{array}\begin{array}{lll} \$1,200,000\\\\200,000\\\\1,000,000 \\320,000\\80,000 \\60,000 \\16,000\end{array}\end{array}$
Based on the data presented above,what is the number of times bond interest charges were earned round to two decimal places?

• A)5.72
• B)6.83
• C)4.72
• D)4.83

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