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 $348,000 $216,000 Current maturities of serial 350,000 350,000 bonds payable Serial bonds payable, 10% 1,640,000 1,990,000 Common stock, $1 par value 70,000 80,000 Paid-in capital in excess of par 730,000 740,000 Retained earnings 2,540,000 2,020,000 The income before income tax expense was $656,700 and $574,600 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 Previous year b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year C. The ratio of liabilities to stockholders' equity has These results are the combined result of a year. and the number of times bond interest charges were earned has from the previous year. income before income taxes and interest expense in the current year compared to the previous