Given the Following Data, Determine the Times Interest Earned Ratio

question 150

Essay

Given the following data, determine the times interest earned ratio.
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Net income, $70,000
Bonds payable, issued at face value, 8%, $5,000,000
Tax rate is 30%
Interest payable, $6,000
Interest receivable, $1,700

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Definitions:

Superior Mesenteric Artery

A major artery that supplies blood to the intestines, including parts of the stomach, pancreas, and the lower portion of the esophagus.

Small Intestine

A long, coiled section of the gastrointestinal tract where most digestion of food and absorption of nutrients occurs.

Cecum

Cul-de-sac forming the first part of the large intestine.

Renal Arteries

Blood vessels that supply the kidneys with blood, enabling them to filter waste products from the blood to produce urine.