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	$628,000		$193,000
Current maturities of serial bonds payable	410,000		410,000
Serial bonds payable, 10%	1,710,000		2,120,000
Common stock, $1 par value	90,000		120,000
Paid-in capital in excess of par	1,010,000		1,010,000
Retained earnings	3,480,000		2,760,000

The income before income tax was $572,400 and $500,900 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