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Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December
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 Previous Year Year Accounts payable $310,000 $262,000 Current maturities of serial bonds payable 400,000 400,000 Serial bonds payable, 10% 1,930,000 2,330,000 Common stock, $1 par value 90,000 110,000 Paid-in capital in excess of par 970,000 970,000 Retained earnings 3,340,000 2,660,000 The income before income tax expense was $652,400 and $570,900 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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