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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 $924,000 $800,000 Current maturities of serial bonds payable 200,000 200,000 Serial bonds payable, 10%, issued 2009, due 2019 1,000,000 1,200,000 Common stock, $10 par value 250,000 250,000 Paid-in capital in excess of par 1,250,000 1,250,000 Retained earnings 860,000 500,000 The income before income tax was $480,000 and $420,000 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 number of times the bond interest charges are earned during the year for both years. Current year Previous year

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 $924,000 $800,000 Current maturities of serial bonds payable 200,000 200,000 Serial bonds payable, 10%, issued 2009, due 2019 1,000,000 1,200,000 Common stock, $10 par value 250,000 250,000 Paid-in capital in excess of par 1,250,000 1,250,000 Retained earnings 860,000 500,000 The income before income tax was $480,000 and $420,000 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 number of times the bond interest charges are earned during the year for both years. Current year Previous year

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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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 $924,000 $800,000

Current maturities of serial bonds payable 200,000 200,000

Serial bonds payable, 10%, issued 2009, due 2019 1,000,000 1,200,000

Common stock, $10 par value 250,000 250,000

Paid-in capital in excess of par 1,250,000 1,250,000

Retained earnings 860,000 500,000

The income before income tax was $480,000 and $420,000 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 number of times the bond interest charges are earned during the year for both years. Current year Previous year

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