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	$415,000		$104,000
Current maturities of serial bonds payable	260,000		260,000
Serial bonds payable, 10%	1,040,000		1,300,000
Common stock, $1 par value	50,000		60,000
Paid-in capital in excess of par	540,000		540,000
Retained earnings	1,860,000		1,480,000

The income before income tax expense was $299,000 and $261,600 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	fill in the blank 1
Previous 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
Previous year	fill in the blank 4