The following data were taken from the financial statements of Hunter Inc. for December 31...
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Accounting
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 $652,000 $320,000 570,000 570,000 Current maturities of serial bonds payable Serial bonds payable, 10% 3,140,000 Common stock, $1 par value 120,000 2,570,000 100,000 1,040,000 3,600,000 Paid-in capital in excess of par 1,050,000 Retained earnings 2,860,000 The income before income tax was $1,036,200 and $906,700 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 c. The ratio of liabilities to stockholders' equity has and the number of times bond interest charges were earned has from the previous year. These results are the combined result of a income before income taxes and interest expense in the current year compared to the previous year
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