The following data were taken from the financial statements of Hermes Inc. for December 31, 2012 and 2011:

The income before income tax was $891,000 and $787,500 for the years 2012 and 2011, respectively.a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.b. Determine the number of times the bond interest charges are earned during the year for both years. Round to one decimal place.c. what conclusions can be drawn from these data as to the company's ability to meet its currently maturingdebts?

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Dec. 31, 2012 Dec. 31, 2011 Accounts payable Current maturities of serial bonds payable Serial bonds payable, 9%, issued 2007, due 2017 Common stock, $1 par value Paid-in capital in excess of par Retained earnings $ 473,960 $ 325,000 500,000 3,000,000 100,000 1,200,000 2,950,000 2,500,000 1,200,000 3,662,800