1. 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	fill in the blank 1
   Previous year	fill in the blank 2

   b. Determine the times interest earned ratio for both years. Round to one decimal place.

   Current year	fill in the blank 3
   Previous year	fill in the blank 4

   c. The ratio of liabilities to stockholders' equity has 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.