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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 31
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 $367,000 $222,000 370,000 370,000 Accounts payable Current maturities of serial bonds payable Serial bonds payable, 10% Common stock, $1 par value Paid-in capital in excess of par 1,720,000 2,090,000 70,000 90,000 770,000 770,000 Retained earnings 2,670,000 2,120,000 The income before income tax was $522,500 and $457,200 for the current and previous years, respectively, b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year
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