Ratio of liabilities to owner's equity The following data were taken from Mesa Company's balance sheet: Dec. 31,2019 Dec. 31,2018 Total liabilities $547,000 $518,000 Total owner's equity 415,000 370,000 a. Compute the ratio of liabilities to owner's equity.b. Has the creditor's risk increased or decreased from December 31,2018, to December 31, 2019?
Ratio of liabilities to owner's equity The following data were taken from Mesa Company's balance sheet: Dec. 31,2019 Dec. 31,2018 Total liabilities $547,000 $518,000 Total owner's equity 415,000 370,000 a. Compute the ratio of liabilities to owner's equity.b. Has the creditor's risk increased or decreased from December 31,2018, to December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Ratio of liabilities to owner's equity
The following data were taken from Mesa Company's
| Dec. 31,2019 | Dec. 31,2018 |
| Total liabilities | $547,000 | $518,000 |
| Total owner's equity | 415,000 | 370,000 |
a. Compute the ratio of liabilities to owner's equity.
b. Has the creditor's risk increased or decreased from December 31,
2018, to December 31, 2019?
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