Ratio of liabilities to stockholders' equity The following data were taken from Alvarado Company's balance sheet:...

Transcribed Image Text:

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 Total stockholders' equity $4,085,000 4,300,000 $2,880,000 3,600,000 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? 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 Total stockholders' equity $4,085,000 4,300,000 $2,880,000 3,600,000 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?

Answer rating: 100% (QA)

The image contains financial data for Alvarado Companys balance sheet for two consecutive years Dec ... View the full answer