Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The times interest earned for Year 2 is closest to:
A)3.40
B)8.34
C)4.84
D)5.84

Question

Hartzog Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The times interest earned for Year 2 is closest to:
A)3.40 
B)8.34 
C)4.84 
D)5.84

Quizplus · Accepted Answer

Times interest earned = Earnings before interest expense and income taxes F1F1F1S1F1F1F10 Interest expense
= $146 F1F1F1S1F1F1F10 $25 = 5.84

Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear