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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 3
Ratio of liabilities to stockholders' equity and times interest earned
The following data were taken from the financial statements of Hunter Inc. for December of two recent years:
The income before income tax expense was $ and $ for the current and previous years, respectively.
a Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place.
Current year
Previous year
b Determine the times interest earned ratio for both years. Round your answers to one decimal place.
Current year
Previous year
c The ratio of liabilities to stockholders' equity has
and the number of times bond interest charges were earned 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.
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