Given the following data:
$\begin{array}{lcl}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total stockholders' equity } & 95,000 & 80,000
\end{array}$

a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2013, to December 31, 2014?

Question

Given the following data:
$\begin{array}{lcl}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total stockholders' equity } & 95,000 & 80,000
\end{array}$

a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2013, to December 31, 2014?

Quizplus · Accepted Answer

The Answer of Given the following data:
$\begin{array}{lcl}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total stockholders' equity } & 95,000 & 80,000
\end{array}$

a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2013, to December 31, 2014?

Given the Following Data A Compute the Ratio of Liabilities to Stockholders' Equity for Dec