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28 Sep 2019
Accounts payable $350,000 $297,500 Current maturities of serial bonds payable 240,000 280,000 Serial bonds payable, 10%, issued 2009, due 2019 1,150,000 1,310,000 Common stock, $1 par value 80,000 100,000 Paid-in capital in excess of par 780,000 780,000 Retained earnings 2,660,000 2,400,000
The income before income tax was $364,800 and $320,500 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. Round to one decimal place.
Current year Previous year
Accounts payable | $350,000 | $297,500 | ||
Current maturities of serial bonds payable | 240,000 | 280,000 | ||
Serial bonds payable, 10%, issued 2009, due 2019 | 1,150,000 | 1,310,000 | ||
Common stock, $1 par value | 80,000 | 100,000 | ||
Paid-in capital in excess of par | 780,000 | 780,000 | ||
Retained earnings | 2,660,000 | 2,400,000 |
The income before income tax was $364,800 and $320,500 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. Round to one decimal place.
Current year | |
Previous year |
Jarrod RobelLv2
29 Sep 2019