What is the times interest earned ratio

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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 year340,000

Income tax for year80,000

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

Reference no: EM132500164

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