Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken...
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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 $367,000 $222,000 370,000 370,000 Accounts payable Current maturities of serial bonds payable Serial bonds payable, 10% Common stock, $1 par value Paid-in capital in excess of par 1,720,000 2,090,000 70,000 90,000 770,000 770,000 Retained earnings 2,670,000 2,120,000 The income before income tax was $522,500 and $457,200 for the current and previous years, respectively, b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year Previous year
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