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The following data were taken from the financial statements of Hunter Inc. for December 3 1 of two recent years: Current Year Prior Year Accounts
The following data were taken from the financial statements of Hunter Inc. for December of two recent years:
Current Year Prior Year
Accounts payable $ $
Current maturities of serial bonds payable
Serial bonds payable,
Common stock, $ par value
Paidin capital in excess of par
Retained earnings
The income before income tax expense was $ and $ 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
Prior year fill in the blank
b Determine the times interest earned ratio for both years. Round to one decimal place.
Current year fill in the blank
Prior year fill in the blank
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.
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