The following data were taken from the financial statements of Durable Structures, Inc. for December 31, 2006 and 2005:

The income before income tax was $528,000 and $336,000 for the years 2006 and 2005, respectively.
a. Determine the ratio of liabilities to stockholders equity at the end of each year. Round to two digits after the decimal place.
b. Determine the number of times the bond interest charges are earned during the year for both years.
c. What conclusions can be drawn from these data as to the companys ability to meet its currently maturing debts?

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December 31, 2006 December 31, 2005 S140,000 200,000 1,200,000 Current maturities of serial bonds payable Serial bonds payable, 896, issued 2001, due 2011 . Commo Paid-in capital in excess of par. . 200,000 1,000,000 100,000 500,000 1,900,000 on stock, $1 par value 100,000 500,000 1,600,000