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

question 12

Multiple Choice

Balance sheet and income statement data indicate the following: $\begin{array}{l}\begin{array}{lll}\text { Bonds payable,6 \% due in 15 years } \\\text { Preferred 8 \% stock,\$ 100 par } \\ \text { no change during the year } \\\text { Common stock, \$ 50 par } \\\text { no change during the year } \\\text { Income before income tax for year } \\\text { Income tax for year } \\\text { Common dividends paid } \\\text { Preferred dividends paid }\\\end{array}\begin{array}{lll} \$1,200,000\\\\200,000\\\\1,000,000 \\320,000\\80,000 \\60,000 \\16,000\end{array}\end{array}$
Based on the data presented above,what is the number of times bond interest charges were earned round to two decimal places?

• A)5.00
• B)5.44
• C)4.00
• D)4.33

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Definitions:

Electronic Charge

A fundamental property of electrons that is responsible for electrical interactions, characterized by a negative value and measured in coulombs.

Synergistic Interaction

A situation where the combined effect of two or more factors exceeds the sum of their individual effects.

Hydrogen Bonds

A weak bond between two molecules resulting from an electrostatic attraction between a proton in one molecule and an electronegative atom in the other.

Time Delay

The period between the initiation of an action and its effect or outcome, often used in reference to system responses in technology, physics, or communication.