Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's balance sheet: Dec. 31, 20Y4 Dec. 31, 20ҮЗ Total liabilities $4,900,000 $2,100,000 Total stockholders' equity 4,900,000 2,800,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to 2 decimal places. Dec. 31, 20Y4 Dec. 31, 20YЗ b. Has the creditor's risk increased or decreased from December 31, 20Y3, to December 31, 20Y4? Decreased Increased
Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's balance sheet: Dec. 31, 20Y4 Dec. 31, 20ҮЗ Total liabilities $4,900,000 $2,100,000 Total stockholders' equity 4,900,000 2,800,000 a. Compute the ratio of liabilities to stockholders' equity for each year. Round your answers to 2 decimal places. Dec. 31, 20Y4 Dec. 31, 20YЗ b. Has the creditor's risk increased or decreased from December 31, 20Y3, to December 31, 20Y4? Decreased Increased
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.2.2MBA
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