Balance Sheet and Income Statement Data Indicate the Following Based on the Data Presented Above,what Is the Number of

Balance sheet and income statement data indicate the following: $\begin{array}{lr}\text { Bonds payable, } 10 \% \text { due in two years } & \$ 1,000,000 \\\text { Preferred } 5 \% \text { stock, } \$ 100 \text { par no change during year } & 300,000 \\\text { Common stock, } \$ 50 \text { par no change during year } & 2,000,000 \\\text { Income before income tax for year } & 550,000 \\\text { Income tax for year } & 80,000 \\\text { Common dividends paid } & 50,000 \\\text { Preferred dividends paid } & 15,000\end{array}$ Based on the data presented above,what is the number of times bond interest charges were earned round to one decimal point?

A) 1.5
B) 6.4
C) 6.5
D) 5.5

Correct Answer:

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