Question
The following data were taken from the financial statements of Hunter Inc. for December 31 of...
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year |
Previous Year |
|||
| Accounts payable | $684,000 | $340,000 | ||
| Current maturities of serial bonds payable | 600,000 | 600,000 | ||
| Serial bonds payable, 10% | 2,740,000 | 3,340,000 | ||
| Common stock, $1 par value | 100,000 | 130,000 | ||
| Paid-in capital in excess of par | 1,110,000 | 1,110,000 | ||
| Retained earnings | 3,820,000 | 3,040,000 | ||
The income before income tax expense was $1,169,000 and $1,022,900 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
Please write with all steps
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