Reference no: EM132476195

Balance sheet and income statement data indicate the following:

Bonds payable, 6% (this is year 4 of 20 years)          $1,200,000

Income before income tax for year                           340,000

Income tax for year                                                80,000

Interest payable                                                      9,000

Interest receivable                                                  26,000

Question 1: Based on the data presented above, what is the times interest earned ratio? (Round to two decimal places.)

Option 1: 4.83

Option 2: 6.83

Option 3: 5.72

Option 4: 4.72