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 $924,000 $800,000

Current maturities of serial bonds payable 200,000 200,000

Serial bonds payable, 10% 1,000,000 1,200,000

Common stock, $10 par value 250,000 250,000

Paid-in capital in excess of par 1,250,000 1,250,000

Retained earnings 860,000 500,000

The income before income tax was $480,000 and $420,000 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