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 Prior Year

Accounts payable $$348,000$ $$170,000$

Current maturities of serial bonds payable $300,000300,000$

Serial bonds payable, $10\%1,360,0001,660,000$

Common stock, $$1$ par value $50,00070,000$

Paid$-$in capital in excess of par $550,000550,000$

Retained earnings $1,910,0001,510,000$

The income before income tax expense was $$614,200$ and $$537,400$ 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 fill in the blank $1$

Prior year fill in the blank $2$

b$.$ Determine the times interest earned ratio for both years. Round to one decimal place.

Current year fill in the blank $3$

Prior year fill in the blank $4$

c$.$ The ratio of liabilities to stockholders' equity have

and the times interest earned ratio has

from the previous year. These results are the combined result of a

income before income taxes and

interest expense in the current year compared to the previous year.