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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 $737,000 $198,000 Current maturities of serial bonds payable 450,000 450,000 Serial bonds payable, 10% 1,830,000 2,280,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 950,000 950,000 Retained earnings 3,280,000 2,600,000 The income before income tax expense was $866,400 and $758,100 for the current and previous years, respectively. Determine the times interest earned ratio for both years. Round your answers to one decimal place.

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 $737,000 $198,000 Current maturities of serial bonds payable 450,000 450,000 Serial bonds payable, 10% 1,830,000 2,280,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 950,000 950,000 Retained earnings 3,280,000 2,600,000 The income before income tax expense was $866,400 and $758,100 for the current and previous years, respectively. Determine the times interest earned ratio for both years. Round your answers to one decimal place.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $737,000 $198,000 Current maturities of serial bonds payable 450,000 450,000 Serial bonds payable, 10% 1,830,000 2,280,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 950,000 950,000 Retained earnings 3,280,000 2,600,000 The income before income tax expense was $866,400 and $758,100 for the current and previous years, respectively. Determine the times interest earned ratio for both years. Round your answers to one decimal place.
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 $737,000 $198,000 Current maturities of serial bonds payable 450,000 450,000 Serial bonds payable, 10% 1,830,000 2,280,000 Common stock, $1 par value 80,000 110,000 Paid-in capital in excess of par 950,000 950,000 Retained earnings 3,280,000 2,600,000 The income before income tax expense was $866,400 and $758,100 for the current and previous years, respectively. Determine the times interest earned ratio for both years. Round your answers to one decimal place.
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