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eBook Calculator Ratio of abilities to Stockholders' Equity and Times Interest Eamed The following data...

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eBook Calculator Ratio of abilities to Stockholders' Equity and Times Interest Eamed 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 $924,000 $800,000 Current maturities of serial bonds payable 200,000 200,000 Serial bonds payable, 10% 1,000,000 Common stock, $10 par value 250,000 250,000 Pald-in capital in excess of par 1,250,000 1,250,000 Retained earnings 860,000 500,000 The income before income tax was $480,000 and $420,000 for the current and previous years, respectively. 1,200,000 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 4.8 X Previous year 3.5 X C. The ratio of liabilities to stockholders' equity has improved and the times interest earned ratio has improved from the previous year. These results are the combined result of a larger income before income taxes and lower interest expense in the current year compared to the previous year

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