FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 |
Previous Year |
|||
Accounts payable | $698,000 | $212,000 | ||
Current maturities of serial bonds payable | 460,000 | 460,000 | ||
Serial bonds payable, 10% | 1,920,000 | 2,380,000 | ||
Common stock, $1 par value | 100,000 | 130,000 | ||
Paid-in capital in excess of par | 1,130,000 | 1,130,000 | ||
3,900,000 | 3,100,000 |
The income before income tax expense was $714,000 and $624,800 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 | fill in the blank 1 |
Previous 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 |
Previous year | fill in the blank 4 |
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