Question
hi Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges Earned The following data were taken from the financial statements of Starr
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Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges EarnedThe following data were taken from the financial statements of Starr Construction Inc. for December 31, 20Y6 and 20Y5:
The portion of the 8% serial bonds that come due in the following year are listed in the table above as current maturities; the remaining bonds are reported as serial bonds payable. The income before income tax was $2,816,000 and $2,640,000 for the years 20Y6 and 20Y5, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
Dec. 31, 20Y6 | |
Dec. 31, 20Y5 |
b. Determine the number of times the bond interest charges are earned during the year for both years. Round to one decimal place.
Dec. 31, 20Y6 | |
Dec. 31, 20Y5 |
|
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