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The Following Financial Statement Information Is Available for Long Corporation

Question 27

Multiple Choice

The following financial statement information is available for Long Corporation: 20202019 Net income $115,000$80,000 Income tax expense 30,00029,000 Interest expense 18,00014,000 Dividends paid to preferred  stockholders 22,00020,000 Dividends paid to preferred  stockholders 15,00010,000\begin{array}{lrr}&2020&2019\\\text { Net income } & \$ 115,000 & \$ 80,000 \\\text { Income tax expense } & 30,000 & 29,000 \\\text { Interest expense } & 18,000 & 14,000 \\\text { Dividends paid to preferred } & &\\\text { stockholders } & 22,000 & 20,000 \\\text { Dividends paid to preferred } & & \\\text { stockholders } & 15,000 & 10,000\end{array} The times interest earned for 2020 is


A) 7.4 times.
B) 6.4 times.
C) 9.1 times.
D) 7.8 times.

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