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?

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Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
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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?

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