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

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Given the following data:

      Dec. 31, Year 2     Dec. 31, Year 1
Total liabilities     $128,250     $120,000
Total stockholders' equity     95,000     80,000

a.  Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to two decimal places.

  Liabilities to Stockholders'
Equity Ratio
Dec. 31, Year 2 fill in the blank 1
Dec. 31, Year 1 fill in the blank 2

b.  Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?

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