Given the following data: Total liabilities Total owner's equity Dec. 31, Year 2 Dec. 31, Year 1 $128,250 95,000 $120,000 80,000 a. Compute the ratio of liabilities to owner's equity for each year. Round your answers to two decimal places. Liabilities to Owner's Equity Ratio Dec. 31, Year 2 Dec. 31, Year 1 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

Given the following data: Total liabilities Total owner's equity Dec. 31, Year 2 Dec. 31, Year 1 $128,250 95,000 $120,000 80,000 a. Compute the ratio of liabilities to owner's equity for each year. Round your answers to two decimal places. Liabilities to Owner's Equity Ratio Dec. 31, Year 2 Dec. 31, Year 1 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...

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The debt is amortized by the periodic payment shown Compute (a) the number of payments required to amortize the debt, (b) the outstanding principal at the time indicated Debt PrincipalDebt Payment Payment Interval Conversion Period monthly Outstanding Principal After: 6th payment Interest Rate $16,000 $1,419 3 months 6% (a) The number of payments required to amortize the debt is Round up to the nearest integer.) (b) The outstanding principal is S (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed).
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Financial Accounting can you please give correct answer?
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