Balance sheet and income statement data indicate the following: Bonds payable, 8% (issued 2000, due...
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Balance sheet and income statement data indicate the following: Bonds payable, 8% (issued 2000, due 2024) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid Company A $1,200,000 300,000 1,000,000 495,000 75,000 50,000 15,000 Company B $900,000 400,000 1,000,000 130,000 12,000 0 20,000 a. For each company, what is the times interest earned ratio? Round your answers to one decimal place. Company A Company B b. Which company gives potential creditors the most protection? 
Balance sheet and income statement data indicate the following: a. For each company, what is the times interest earned ratio? Round your answers to one decimal place. b. Which company gives potential creditors the most protection
Balance sheet and income statement data indicate the following: Bonds payable, 8% (issued 2000, due 2024) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year Income tax for year Common dividends paid Preferred dividends paid Company A $1,200,000 300,000 1,000,000 495,000 75,000 50,000 15,000 Company B $900,000 400,000 1,000,000 130,000 12,000 0 20,000 a. For each company, what is the times interest earned ratio? Round your answers to one decimal place. Company A Company B b. Which company gives potential creditors the most protection?
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