Selected data from the financial statements of Lopez Company follow. Required: Determine whether the debt to equity

Question:

Selected data from the of Lopez Company follow.

2018 2019 Total liabilities Common stock ($30 par) Additional paid-in capital-common stock Retained earnings $952,000 22

Required:
Determine whether the debt to equity ratio is increasing or decreasing and whether Lopez should be concerned?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...