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 Prior Year Accounts payable $518,000 $250,000 Current maturities of serial bonds payable 460,000 460,000 Serial bonds payable, 10% 2,070,000 2,530,000 Common stock, $1 par value 70,000 100,000 Paid-in capital in excess of par 840,000 840,000 Retained earnings 2,900,000 2,300,000 The income before income tax expense was $986,700 and $863,400 for the current and prior years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Prior year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Prior year fill in the blank 4
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 Prior Year Accounts payable $518,000 $250,000 Current maturities of serial bonds payable 460,000 460,000 Serial bonds payable, 10% 2,070,000 2,530,000 Common stock, $1 par value 70,000 100,000 Paid-in capital in excess of par 840,000 840,000 Retained earnings 2,900,000 2,300,000 The income before income tax expense was $986,700 and $863,400 for the current and prior years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Prior year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Prior year fill in the blank 4
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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Ratio of Liabilities to
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Prior Year | |||
| Accounts payable | $518,000 | $250,000 | ||
| Current maturities of serial bonds payable | 460,000 | 460,000 | ||
| Serial bonds payable, 10% | 2,070,000 | 2,530,000 | ||
| Common stock, $1 par value | 70,000 | 100,000 | ||
| Paid-in capital in excess of par | 840,000 | 840,000 | ||
| 2,900,000 | 2,300,000 |
The income before income tax expense was $986,700 and $863,400 for the current and prior years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | fill in the blank 1 |
| Prior year | fill in the blank 2 |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | fill in the blank 3 |
| Prior year | fill in the blank 4 |
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