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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
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 | $512,000 | $250,000 | ||
Current maturities of serial bonds payable | 450,000 | 450,000 | ||
Serial bonds payable, 10% | 2,030,000 | 2,480,000 | ||
Common stock, $1 par value | 80,000 | 90,000 | ||
Paid-in capital in excess of par | 820,000 | 830,000 | ||
Retained earnings | 2,840,000 | 2,260,000 |
The income before income tax was $992,000 and $868,000 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 |
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