Given the Following Data, Determine the Times Interest Earned Ratio

question 183

Short Answer

Given the following data, determine the times interest 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 - 30%

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Definitions:

Gas Combustion Engines

Engines that generate mechanical energy by burning a fuel gas, such as gasoline, in a combustion process.

Complex Compound

refers to a chemical compound formed from the bonding of one central atom or ion to several surrounding atoms, ions, or molecules.

Building Block

is a fundamental component or element used as a base for constructing something more complex, such as molecules for life or materials for construction.

Monosaccharides

The simplest form of carbohydrates, consisting of single sugar molecules like glucose and fructose, which are essential energy sources.