Homework Help is Here – Start Your Trial Now!
Business
Accounting
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: Previous Year Accounts payable $716,000 $171,000 Current maturities of serial bonds payable 420,000 420,000 Serial bonds payable, 10% 1,680,000 2,100,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 770,000 780,000 Retained earnings 2,680,000 2,120,000 The income before income tax expense was $756,000 and $661,500 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. Current year Previous year b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Current year Previous year Current Year

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: Previous Year Accounts payable $716,000 $171,000 Current maturities of serial bonds payable 420,000 420,000 Serial bonds payable, 10% 1,680,000 2,100,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 770,000 780,000 Retained earnings 2,680,000 2,120,000 The income before income tax expense was $756,000 and $661,500 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. Current year Previous year b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Current year Previous year Current Year

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

G

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 Accounts payable $716,000 $171,000 Current maturities of serial bonds payable 420,000 420,000 Serial bonds payable, 10% 1,680,000 2,100,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 770,000 780,000 Retained earnings 2,680,000 2,120,000 The income before income tax expense was $756,000 and $661,500 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. Current year Previous Year Current year Previous year b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Previous year
Transcribed Image Text: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 Accounts payable $716,000 $171,000 Current maturities of serial bonds payable 420,000 420,000 Serial bonds payable, 10% 1,680,000 2,100,000 Common stock, $1 par value 70,000 90,000 Paid-in capital in excess of par 770,000 780,000 Retained earnings 2,680,000 2,120,000 The income before income tax expense was $756,000 and $661,500 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. Current year Previous Year Current year Previous year b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Previous year
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS