uity and times interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Accounts payable Current maturities of serial bonds payable Serial bonds payable, 10% Common stock, $1 par value Paid-in capital in excess of par Retained earnings Current Year Prior Year $320,000 $278,000 410,000 410,000 2,030,000 2,440,000 90,000 110,000 1,010,000 1,020,000 3,500,000 2,780,000 The income before income tax expense was $658,800 and $576,400 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 Prior year b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Prior year c. The ratio of liabilities to stockholders' equity have improved the previous year. These results are the combined result of a larger expense in the current year compared to the previous year. Check My Work and the times interest earned ratio has improved income before income taxes and lower from interest Previous Next >