Question:
Balance sheet and income statement data indicate the following:
Bonds payable 6% 1,200,000
Income Before income tax for year 340,000
Income tax for year 80,000
Common Dividends paid 60,000
Preferred Dividends paid 16,000
Based on the data presented, what is the number of times bond interest charges were earned (round to two decimal places)?
Answer, according to answer key is 5.72 but I do not come up with that number. How do they arrive at that number?