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Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for
Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year $140,000 $216,000 290,000 290,000 Accounts payable Current maturities of serial bonds payable Serial bonds payable, 10% Common stock, $1 par value 1,790,000 1,500,000 80,000 100,000 Paid-in capital in excess of par 850,000 850,000 Retained earnings 2,930,000 2,330,000 The income before income tax was $662,300 and $579,500 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year Previous year b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year
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