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The following data were taken from Alvarado Company’s balance sheet:     Dec. 31, 20Y4   Dec. 31, 20Y3 Total liabilities   $4,465,000   $2,625,000 Total stockholders’ equity   4,700,000   3,500,000 a. Compute the ratio of liabilities to stockholders’ equity for each year. Round your answers to 2 decimal places. Dec. 31, 20Y4  Dec. 31, 20Y3  b. Has the creditor’s risk increased or decreased from December 31, 20Y3, to December 31, 20Y4

The following data were taken from Alvarado Company’s balance sheet:     Dec. 31, 20Y4   Dec. 31, 20Y3 Total liabilities   $4,465,000   $2,625,000 Total stockholders’ equity   4,700,000   3,500,000 a. Compute the ratio of liabilities to stockholders’ equity for each year. Round your answers to 2 decimal places. Dec. 31, 20Y4  Dec. 31, 20Y3  b. Has the creditor’s risk increased or decreased from December 31, 20Y3, to December 31, 20Y4

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ratio of liabilities to stockholders’ equity

The following data were taken from Alvarado Company’s balance sheet:

    Dec. 31, 20Y4   Dec. 31, 20Y3
Total liabilities   $4,465,000   $2,625,000
Total stockholders’ equity   4,700,000   3,500,000

a. Compute the ratio of liabilities to stockholders’ equity for each year. Round your answers to 2 decimal places.

Dec. 31, 20Y4 
Dec. 31, 20Y3 

b. Has the creditor’s risk increased or decreased from December 31, 20Y3, to December 31, 20Y4

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