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 $500,000 300,000 1,200,000 50,000 550,000 1,900,000 Previous Year $117,000 300,000 1,500,000 70,000 550,000 1,510,000 Accounts payable Current maturities of serial bonds payable Serial bonds payable, 1096 Common stock, $1 par value Paid-in capital in excess of par Retained earnings The income before income tax was $570,000 and $498,800 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 c. The ratio of liabilities to stockholders' equity has improved and the number of times bond interest charges 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