Previous Year Accounts payable $420,000 $160,000 Current maturities of serial bonds payable 300,000 300,000 Serial bonds payable, 10% 1,310,000 1,610,000 Common stock, $1 par value 80,000 100,000 Paid-in capital in excess of par 890,000 900,000 Retained earnings 3,090,000 2,450,000 The income before income tax expense was $644,000 and $563,500 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders equity at the end of each year. Round your answers to one decimal place. Current year Previous year Current Year b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Current year Previous year c. The ratio of liabilities to stockholders' equity has and the number of times bond interest charges were earned has income before income taxes and from the previous year. These results are the combined result of a interest expense in the current year compared to the previous year.

The income before income tax expense was $644,000 and $563,500 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders equity at the end of each yeat. Round your answers to one decimal place. b. Determine the times interest earned ratio for both years. Round vour answers to one decimal place. c. The ratio of liabilities to stockholders' equity has and the number of times bond interest charges were earned has fcom the previous year. These results are the combined result of a income before Income taxes and interest expense in the current year compared to the previous yean