What is the number of times bond interest charges


Balance sheet and income statement data indicate the following:

Bonds payable, 8% (issued 1990, due 2015)
$1,200,000
Preferred 8% stock, $100 par
(no change during the year)
200,000
Common stock, $50 par
(no change during the year)
1,000,000
Income before income tax for year
320,000
Income tax for year
80,000
Common dividends paid
60,000
Preferred dividends paid
16,000


Based on the data presented above, what is the number of times bond interest charges were earned (round to two decimal places)?

 

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Accounting Basics: What is the number of times bond interest charges
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