Print om Ratio of Liabilities to Stockholders Equity and Times Interest Camed The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years Current Previous Year Year Accounts payable $478,000 $140,000 Current maturities of serial bonds payable 320,000 320,000 Serial bonds payable, 10% 1,320,000 1,640,000 Common stock, 51 par value 70,000 90,000 Paid in capital in excess of par 780,000 780,000 Retained earnings 2,680,000 2,130,000 The income before income tax expense was $377,200 and $330,100 for the current and previous years, respectively, a. Determine the ratio of abilities to stockholders' equity at the end of each year. Round to one decimal place Current year 0.6 Previous year 0.7 b. Determine the times interest earned ratio for both years, Round to one decimal place, Current year 2.0 X Previous year 1.3 X c. The ratio of liabilities to stockholders' equity has improved and the number of times bond interest changes were earned has improved & from the previous year. These results are the combined result of a larger income before income taxes and lower interest expense in the current year compared to the previous year. Feedback