Ratio of Liabilities to stockholders Equity and Times Interest Eamed The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $115,000 $185,000 Current maturities of serial bonds payable 240,000 240,000 Serial bonds payable, 10% 1,260,000 1,500,000 Common stock, $1 par value 70,000 80,000 Paid In capital in excess of par 210,000 720,000 Retained earnings 2.450,000 1.950,000 The income before income tax expense was $495,000 and $433,100 for the current and prior years, respectively a. Determine the ratio of liabilities to stockholders' equity at the end of each year Round to one decimal place. Current year Prior year b. Determine the times interest earned ratio for both years, Round to one decimal place. Current year 4.9 X Prior year 3.9 X c. The ratio of liabilities to stockholders equity have improved and the times interest corned ratio has improved lower Interest expense in the current year compared to the previous year Feedback Che My W a Divide total liabilities by total stockholders' equity b Divide the sum of income before income tax plus interest expense by interest expense c. Consider the relationship of the accounts involved Check My Work 2 more Check My Workoses running AWO hp