Given the Following Data,determine the Number of Times Interest Charges

question 71

Essay

Given the following data,determine the number of times interest charges are earned ratio.
Net income,$70,000
Bonds payable,issued at face value,8%,$5,000,000
Preferred Stock,$50 par value,6%,10,000 shares issued & outstanding Tax rate is 30%

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Definitions:

Generally Accepted Accounting Principles

A framework of accounting standards, principles, and procedures that companies must follow when compiling their financial statements, ensuring transparency and uniformity across industries.

Public Company Accounting Oversight Board

A nonprofit organization established by Congress to oversee the audits of public companies to ensure the accuracy and integrity of financial statements.

Return on Assets Ratio

A financial ratio that indicates how profitable a company is relative to its total assets, measuring how efficiently assets are being used to produce profit.