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 $$606,000$ $$300,000$

Current maturities of serial bonds payable $530,000530,000$

Serial bonds payable, $10\%2,400,0002,930,000$

Common stock, $$1$ par value $90,000110,000$

Paid$-$in capital in excess of par $970,000980,000$

Retained earnings $3,360,0002,670,000$

The income before income tax expense was $$1,025,500$ and $$897,300$ 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.