The following data were taken from the financial statements of Weal Construction, Inc. for December 31, 2010 and 2009:
Dec. 31, 2010 Dec. 31, 2009
Accounts payable $144,000 $202,000
Current maturities of serial bonds payable 200,000 290,000
Serial bonds payable, 10%, issued 2005, due 2015 970,000 1,740,000
Common stock, $1 par value 90,000 110,000
Paid-in capital in excess of par 960,000 970,000
Retained earnings 3,330,000 2,640,000
The income before income tax was $479,700 and $629,300 for the years 2010 and 2009, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
Dec. 31, 2010:
Dec. 31, 2009:
b. Determine the number of times the bond interest charges are earned during the year for both years. Round to one decimal place.
Dec. 31, 2010:
Dec. 31, 2009: