expense was $803,400 and $703,000 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Line Item Description Ratio 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 your answers to one decimal place.
expense was $803,400 and $703,000 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Line Item Description Ratio 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 your answers to one decimal place.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Line
Item Description Current Year Previous Year Accounts payable $362,000 $226,000 Current maturities of serial bonds
payable 360,000 360,000 Serial bonds payable, 10 % 1,700,000 2,060,000 Common stock, $1 par value 70,000 90,000
Paid-in capital in excess of par 760,000 760,000 Retained earnings 2, 630,000 2,090,000 The income before income tax
expense was $803, 400 and $703,000 for the current and previous years, respectively. a. Determine the ratio of liabilities
to stockholders' equity at the end of each year. Round your answers to one decimal place. Line Item Description Ratio
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 your answers to one decimal place.
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