Ratio of Liabilities to Stockholders' Equity and 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 Accounts payable $379,000 $228,000 Current maturities of serial bonds payable 390,000 390,000 Serial bonds payable, 10% 1,800,000 2,190,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par Retained earnings 810,000 2,790,000 810,000 2,220,000 The income before income tax expense was $810,300 and $709,000 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 0.7 0.9 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 result of a larger income before income taxes and lower and the number of times bond interest charges were earned has improved interest expense in the current year compared to the previous year. from the previous year. These results are the combined