Balance sheet and income statement data indicate the followi

Balance sheet and income statement data indicate the following:

Bonds payable, 7% (this is year 4 of 20 years)

Preferred 8% stock, $100 par (no change during the year)

$1,200,000

200,000

Common stock, $50 par

(no change during the year)

1,000,000

Income before income tax for year

340,000

Income tax for year

80,000

Interest Expense

84,000

Common dividends paid

60,000

Preferred dividends paid

16,000

Based on the data presented above, what is the number of times interest charges were earned (round to two decimal places)?

Bonds payable, 7% (this is year 4 of 20 years) Preferred 8% stock, $100 par (no change during the year)	$1,200,000 200,000
Common stock, $50 par (no change during the year)	1,000,000
Income before income tax for year	340,000
Income tax for year	80,000
Interest Expense	84,000
Common dividends paid	60,000
Preferred dividends paid	16,000

the number of times interest charges were earned = (340 + 84)/84

the number of times interest charges were earned = 5.05