Ratio of Liabilities to Stockholders' Equity and Number of Times Interest Charges are Earned
The following data were taken from the financial statements of Hunter Inc. for December 31, 2014 and 2013:
The income before income tax was $480,000 and $420,000 for the years 2014 and 2013, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.Dec. 31, 2014 Dec. 31, 2013
b. Determine the number of times the bond interest charges are earned during the year for both years.Dec. 31, 2014 Dec. 31, 2013