Given the following data:
Dec. 31, 2012 Dec. 31, 2011
Total liabilities $118,750 $104,000
Total stockholders' equity 95,000 80,000
a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2011, to December 31, 2012?

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The Answer of Given the following data:
Dec. 31, 2012 Dec. 31, 2011
Total liabilities $118,750 $104,000
Total stockholders' equity 95,000 80,000
a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2011, to December 31, 2012?

Given the Following Data