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Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Starr Construction Inc. for December
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Starr Construction Inc. for December 31, 2016 and 2015: Dec. 31, 2016 Dec. 31, 2045 Accounts payable and other liabilities $190,000 Current maturities of bonds payable $191,000 270,000 280,000 Serial bonds payable, 10%, issued 2008, due in five years 1,320,000 1,650,000 Common stock, $5 par value 140,000 90,000 Paid-in capital in excess of par 790,000 Retained earnings 1,070,000 2,350,000 2,150,000 The income before income tax was $461,100 and $405,300 for the years 20x5 and 2015, respectively. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Dec. 31, 2016 Dec 31, 2015 b. Determine the times (bond) interest earned during the year for both years. Round to one decimal place. Dec. 31, 2016 Dec. 31, 2045
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