Business, 04.12.2021 19:20 kitttimothy55

Balance sheet and income statement data indicate the following: Company A
Company B
Bonds payable, 8%, 24-year bonds
Income before income tax for year
$1,200,000
$900,000
495,000
130,000
Income tax for year
75,000
12,000
Interest payable
50,000
Interest receivable
21,000
28,000
a. For each company, what is the times interest earned ratio? (Round to one decimal place.)
Company A
Company B
b. Which company gives potential creditors more protection?

Balance sheet and income statement data indicate the following:

Company A
Company B
Bonds payable

Answers: 3

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Balance sheet and income statement data indicate the following: Company A
Company B
Bo...