eBook Question Content Area Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Prior Year Accounts payable $614,000 $164,000 Current maturities of serial bonds payable 380,000 380,000 Serial bonds payable, 10% 1,540,000 1,920,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 800,000 800,000 Retained earnings 2,750,000 2,190,000 The income before income tax expense was $633,600 and $554,400 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 fill in the blank 1 Prior 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 Prior year fill in the blank 4 c. The ratio of liabilities to stockholders' equity have 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. Check My Work

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Ratio of Liabilities to Stockholders' Equity and Times Interest Earned

The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:

	Current Year	Prior Year
Accounts payable	$614,000		$164,000
Current maturities of serial bonds payable	380,000		380,000
Serial bonds payable, 10%	1,540,000		1,920,000
Common stock, $1 par value	70,000		90,000
Paid-in capital in excess of par	800,000		800,000
Retained earnings	2,750,000		2,190,000