Given the following data:
$\begin{array}{lcc}
Dec. ~31,2014&Dec. ~31,2013\
\hline
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total owner's equity } & 95,000 & 80,000
\end{array}$
Compute the ratio of liabilities to owner's equity for each year. Round to two decimal places.
A) 1.50 and 1.07, respectively
B) 1.35 and 1.50, respectively
C) 1.07 and 1.19, respectively
D) 1.19 and 1.35, respectively

Question

Given the following data: 
$\begin{array}{lcc}
Dec. ~31,2014&Dec. ~31,2013\
\hline
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total owner's equity } & 95,000 & 80,000
\end{array}$
Compute the ratio of liabilities to owner's equity for each year. Round to two decimal places.
A) 1.50 and 1.07, respectively
B) 1.35 and 1.50, respectively
C) 1.07 and 1.19, respectively
D) 1.19 and 1.35, respectively

Quizplus · Accepted Answer

The Answer of Given the following data: 
$\begin{array}{lcc}
Dec. ~31,2014&Dec. ~31,2013\
\hline
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total owner's equity } & 95,000 & 80,000
\end{array}$
Compute the ratio of liabilities to owner's equity for each year. Round to two decimal places.
A) 1.50 and 1.07, respectively
B) 1.35 and 1.50, respectively
C) 1.07 and 1.19, respectively
D) 1.19 and 1.35, respectively

Given the Following Data Compute the Ratio of Liabilities to Owner's Equity for Each