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 $184,000 $162,000 Current maturities of serial bonds payable 240,000 240,000 Serial bonds payable, 10% 1,190,000 1,430,000 Common stock, $1 par value 60,000 60,000 Paid-in capital in excess of par 590,000 600,000 Retained earnings 2,040,000 1,630,000 The income before income tax expense was $400,400 and $350,400 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. Line Item Description Ratio Current year fill in the blank 3 Previous year fill in the blank 4 c. The ratio of liabilities to stockholders' equity has fill in the blank 1 of 4 and the number of times bond interest charges were earned has fill in the blank 2 of 4 from the previous year. These results are the combined result of a fill in the blank 3 of 4 income before income taxes and fill in the blank 4 of 4 interest expense in the current year compared to the previous year.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

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	$184,000	$162,000
Current maturities of serial bonds payable	240,000	240,000
Serial bonds payable, 10%	1,190,000	1,430,000
Common stock, $1 par value	60,000	60,000
Paid-in capital in excess of par	590,000	600,000
Retained earnings	2,040,000	1,630,000