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
Homework Answers
Answer #1
If you have any doubts please comment on the answer.
Not the answer you're looking for?
Similar Questions
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
$512,000
$250,000
Current maturities of serial bonds payable
450,000
450,000
Serial bonds payable, 10%
2,030,000
2,480,000
Common stock, $1 par value
80,000
90,000
Paid-in capital in excess of par
820,000
830,000
Retained earnings
2,840,000
2,260,000
The income before income tax was $992,000 and $868,000 for the
current and previous years, respectively.
a. Determine the ratio...
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from...
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
Previous Year
Accounts payable
$626,000
$310,000
Current maturities of serial bonds payable
550,000
550,000
Serial bonds payable, 10%
2,520,000
3,070,000
Common stock, $1 par value
90,000
120,000
Paid-in capital in excess of par
1,020,000
1,020,000
Retained earnings
3,510,000
2,790,000
The income before income tax was $1,013,100 and $886,500 for...
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from...
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
Previous Year
Accounts payable
$522,000
$140,000
Current maturities of serial bonds payable
320,000
320,000
Serial bonds payable, 10%
1,300,000
1,620,000
Common stock, $1 par value
60,000
70,000
Paid-in capital in excess of par
670,000
680,000
Retained earnings
2,330,000
1,850,000
The income before income tax was $469,800 and $411,100 for...
The following data were taken from the financial statements of Gates Inc. for the current fiscal...
The following data were taken from the financial statements of
Gates Inc. for the current fiscal year.
Property, plant, and equipment (net)
$2,442,000
Liabilities:
Current liabilities
$222,000
Note payable, 6%, due in 15 years
1,110,000
Total liabilities
$1,332,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$1,332,000
Common stock, $10 par (no change during year)
1,332,000
Retained earnings:
Balance, beginning of year
$1,420,000
Net income
549,000
$1,969,000
Preferred dividends
$53,280
Common dividends
139,720
193,000
Balance, end of...
The following information was taken from the financial statements of Monarch Resources Inc. for December 31...
The following information was taken from the financial
statements of Monarch Resources Inc. for December 31 of the current
year: Common stock, $40 par value (no change during the year)
$12,400,000 Preferred $10 stock, $200 par (no change during the
year) 8,000,000 The net income was $1,392,000, and the declared
dividends on the common stock were $272,800 for the current year.
The market price of the common stock is $40 per share. For the
common stock, determine (a) the earnings...
The following selected data were taken from the financial statements of Vidahill Inc. for December 31,...
The following selected data were taken from the financial
statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
December 31 20Y7 20Y6 20Y5 Total assets $201,000 $181,000 $161,000
Notes payable (8% interest) 70,000 70,000 70,000 Common stock
28,000 28,000 28,000 Preferred 6% stock, $100 par 14,000 14,000
14,000 (no change during year) Retained earnings 81,020 56,390
42,000 The 20Y7 net income was $25,470, and the 20Y6 net income was
$15,230. No dividends on common stock were declared between...
The following information was taken from the financial statements of Tolbert Inc. for December 31 of...
The following information was taken from the financial
statements of Tolbert Inc. for December 31 of the current fiscal
year:
Common stock, $15 par value (no change during the year)
$2,550,000
Preferred $10 stock, $100 par (no change during the year)
2,000,000
The net income was $438,000 and the declared dividends on the
common stock were $42,500 for the current year. The market price of
the common stock is $10.50 per share.
For the common stock, determine (a) the earnings...
The following data were taken from the financial statements of Gates Inc. for the current fiscal...
The following data were taken from the financial statements of
Gates Inc. for the current fiscal year.
Property, plant, and equipment (net)
$1,154,400
Liabilities:
Current liabilities
$177,000
Note payable, 6%, due in 15 years
888,000
Total liabilities
$1,065,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$1,597,500
Common stock, $10 par (no change during year)
1,597,500
Retained earnings:
Balance, beginning of year
$1,704,000
Net income
633,000
$2,337,000
Preferred dividends
$63,900
Common dividends
143,100
207,000
Balance, end of...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of...
Six Measures of Solvency or Profitability
The following data were taken from the financial statements of
Gates Inc. for the current fiscal year.
Property, plant, and equipment (net)
$1,285,700
Liabilities:
Current liabilities
$199,000
Note payable, 6%, due in 15 years
989,000
Total liabilities
$1,188,000
Stockholders' equity:
Preferred $2 stock, $100 par (no change during year)
$1,782,000
Common stock, $10 par (no change during year)
1,782,000
Retained earnings:
Balance, beginning of year
$1,900,000
Net income
623,000
$2,523,000
Preferred dividends
$35,640
Common...
Six Measures of Solvency or Profitability The following data were taken from the financial statements of...
Six Measures of Solvency or Profitability
The following data were taken from the financial statements of
Gates Inc. for the current fiscal year.
Property, plant, and equipment (net)
$2,591,600
Liabilities:
Current liabilities
$235,000
Note payable, 6%, due in 15 years
1,178,000
Total liabilities
$1,413,000
Stockholders' equity:
Preferred $4 stock, $100 par (no change during year)
$847,800
Common stock, $10 par (no change during year)
847,800
Retained earnings:
Balance, beginning of year
$904,000
Net income
364,000
$1,268,000
Preferred dividends
$33,912
Common...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 9 minutes ago
asked 12 minutes ago
asked 12 minutes ago
asked 17 minutes ago
asked 21 minutes ago
asked 27 minutes ago
asked 30 minutes ago
asked 43 minutes ago
asked 46 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago